Mitsubishi backs ACEN’s energy transition credit push

Eric Francia —PHOTO FROM ACEN

MANILA, Philippines — Ayala-led ACEN Corp.’s push for the early retirement of the 246-megawatt coal plant in Batangas has gained another support, with Japan-based Mitsubishi Corp. coming in as additional partner to explore opportunities in transition credits.

In a joint statement Wednesday, ACEN, Tamasek-led investment platform GenZero and Singapore’s Keppel Ltd. welcomed Mitsubishi and its power unit Diamond Generating Asia (DGA) to the fold.

Mitsubishi and DGA signed a deed of accession to the memorandum of understanding that had been earlier established among ACEN, GenZero and Keppel.

The deal involves closing down the South Luzon Thermal Energy Corp. coal plant, with a target to eventually transform it into a clean energy dispatch facility.

READ: Energy transition is ‘irreversible’–ACEN chief

Shutdown by 2030

ACEN hopes to shut down the facility by 2030, and the groups see transition credits “play[ing] crucial role” in a just transition.

Transition credits are a financing approach used to fund the phaseout of coal plant assets while pursuing replacement facilities that use renewable energy.

“This partnership represents a milestone in our collective efforts to address the enormous challenges of the energy transition. By pioneering the Transition Credits mechanism, we are not only accelerating decarbonization but also demonstrating a viable pathway for coal-dependent economies to transition sustainably,” said Eric Francia, chief executive officer of ACEN.