Ayala-led ACEN Corp. has approved the sale of its shares in the 244 megawatt (MW) South Luzon Thermal Energy Corporation (SLTEC) coal plant with an aggregate value of Php3.7 billion.
The SLTEC coal plant in Calaca, Batangas, is the lone coal plant under ACEN’s portfolio.
In a disclosure to the Philippine Stock Exchange on Tuesday, ACEN said that the shares will be acquired by ETM Philippines Holdings, Inc. (EPHI) and the Insular Life Assurance Company Ltd. (Inlife).
EPHI is a special purpose vehicle that allows financial investors to invest in the energy transition by accelerating the retirement of coal-fired power plants and funding the development of new clean energy technologies.
The transaction will be the country’s pioneer energy transition financing, taking off from the principles of the Energy Transition Mechanism piloted by the Asian Development Bank (ADB).
“This pioneering deal will allow the early retirement and transition of our coal plant to cleaner technology. We hope that this generates some momentum for the just energy transition in the region, and help towards the achievement of Net Zero.” ACEN CEO Eric Francia said in a statement.
Proceeds of the sale of shares will be used to invest in ACEN’s renewable energy projects.
“As a Filipino company with more than 100 years of service and commitment to the nation, we welcome the opportunity to participate in this pioneering deal to promote a sustainable environment for the country’s future,” InLife President and CEO Raoul Littaua said.
ACEN has approved the provision of bridge financing to EPHI to facilitate its investment in SLTEC while providing prospective financial investors a vehicle to participate in energy transition.
ACEN is looking to achieve a 5,000 MW all renewable energy portfolio by 2025. The Ayala energy company currently has an attributable capacity of 3,800 MW across the Asia Pacific.