ACEN, GenZero, Keppel ink deal for coal phaseout

Ayala Group's listed energy company ACEN, investment firm GenZero and infrastructure company Keppel Ltd. have signed an agreement exploring the use of transition credits to accelerate the retirement of South Luzon Thermal Energy Corp. (SLTEC)'s coalfired power plant (CFPP) in Batangas and replace it with aclean energy dispatch facility.

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Under the agreement, parties will undertake a development study to explore the origination and sale of transition credits to accelerate the decommissioning of the 246-megawatt SLTEC power station in Calaca, Batangas by 2030.

After its early retirement, the 246-MW baseload of the CFPP will be replaced with a mid-merit integrated renewables and energy storage system consisting of a solar plant and battery storage.

The project will explore the development of end-to-end technological solutions and an economic model of the coal-to-clean transition.

Upon completion, the project is expected to be one of the first converted CFPPs worldwide to generate transition credits.

The project will be carried out in collaboration with the Rockefeller Foundation's Coal to Clean Credit Initiative and the Monetary Authority of Singapore's Transition Credits Coalition.

CFPPs are the single largest source of carbon emissions globally.