Acen cedes Batangas coal plant to special purpose vehicle | Inquirer Business
Energy transition mechanism

Acen cedes Batangas coal plant to special purpose vehicle

Ayala-led power business Acen Corp. is moving ahead with its “net zero” greenhouse gas emission agenda by selling its interest in the 270-megawatt coal-fired power plant in Batangas.

Acen informed the local bourse that it had approved the sale of common shares in South Luzon Thermal Energy Corp. (SLTEC), operator of the coal facility in Calaca town, to ETM Philippines Holdings Inc. (EPHI).

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EPHI is a special purpose vehicle that allows financial investors to invest in energy transition by accelerating the retirement of coal-fired power plants, and to fund the development of new clean energy technologies.

Acen approved the provision of bridge or short-term financing to EPHI to facilitate its investment in SLTEC, while providing prospective financial investors a vehicle to participate. This is part of its plan for the early retirement of the coal facility by 2040, or 15 years ahead of its technical life.

FEATURED STORIES

For this, Acen is using the Energy Transition Mechanism, which aims to “leverage a market-based approach to accelerate the transition from fossil fuels to clean energy.”

Acen has tapped BPI Capital Corp. and AlphaPrimus Advisors Inc. as joint financial advisors for this transaction.

The Ayala group’s power business is grooming Acen to become a 100-percent renewable energy platform by 2025.

Capital infusion

Separately, Acen is infusing up to P1 billion in equity into (Arec), either directly or indirectly, in exchange for a fee payable by Arec’s parent firm and Acen subsidiary North Luzon Renewable Energy Corp.

The 70-MW Amihan (Caparispisan 2) wind power project in Pagudpud, Ilocos Norte, slated for completion in 2025, is under Arec, which is among the entities that bagged wind supply contracts under the Department of Energy’s Green Energy Auction Program.

Acen is also set to issue a notice to proceed and parent company guarantee for the Amihan project in relation to the contracts with Siemens Gamesa Renewable Energy, for the benefit of Arec, in exchange for a guarantee fee. INQ

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TAGS: `going green’, Batangas, Coal Plant, renewable energy
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