Ayala-led ACEN Corporation has fully divested from the South Luzon Thermal Energy Corp. (SLTEC), its remaining coal-fired power plant through an energy transition mechanism (ETM).
In a disclosure to the Philippine Stock Exchange, ACEN said that it has sold its 832,500 common shares in SLTEC to ETM Philippine Holdings Inc. (EPHI) at Php 100 per share valued at Php83.25 million.
“The sale of ACEN’s common shares in SLTEC, as part of ETM will ultimately result in the early retirement of the 246MW SLTEC coal plant by 2040 (15 years ahead of the end of its technical life), which will help ACEN to fulfill its commitment to achieve Net Zero greenhouse gas emission by 2050 or earlier,” ACEN said in a disclosure.
ACEN had also executed separate option agreements with Government Service Insurance System (GSIS) and EPHI.
“The Option Agreements entitle ACEN and the Investors, severally, to exercise call and put options, respectively, based on certain pre-agreed conditions, in order to enable the early retirement of SLTEC’s 246MW coal plant by 2040, and its transition to a cleaner technology,” ACEN said.
SLTEC owns and operates a 2×135-MW circulating fluidized bed thermal power plant in Calaca, Batangas.
The ETM looks to leverage low-cost and long-term funding geared toward early coal power plant retirement and reinvestment of its proceeds to enable renewable energy.