Mitsubishi Corporation and Diamond Generating Asia (DGA) have partnered with ACEN, GenZero, and Keppel to accelerate the retirement of a 246 MW coal-fired power plant in the country, leveraging Transition Credits to replace its output with clean energy.
The collaboration, formalized through the signing of a Deed of Accession to the 2024 Memorandum of Understanding (MOU) between ACEN, GenZero, and Keppel, marks a major step in the global effort to retire coal plants earlier than their technical lifespan. The initial MOU was witnessed by Singapore’s Minister for Sustainability and the Environment, Grace Fu, and the Philippines’ Secretary for Environment and Natural Resources, Maria Antonia Yulo Loyzaga.
The initiative builds on ACEN’s 2022 landmark transaction that implemented the world’s first market-based Energy Transition Mechanism. The deal involved divesting from the SLTEC plant with an initial plan to retire it by 2040—cutting its operational life by half. With the new collaboration, ACEN is now targeting a more ambitious and much earlier retirement date of 2030.
“Transition Credits offer a groundbreaking solution by mobilizing capital to accelerate the early retirement of coal-fired power plants while replacing the capacity with affordable clean energy and ensuring a just transition for surrounding local communities and industries,” said Frederick Teo, CEO of GenZero.
“We are honored to join this landmark initiative with ACEN, GenZero, and Keppel, which represents one of the world’s first steps toward realizing a credible and a scalable Transition Credits scheme,” said Shinichiro Suzuki, CEO of DGA. “What makes this project truly unique is not only the early retirement of a coal-fired power plant, but also its replacement with equivalent generation of new renewable energy.”
Suzuki added that the initiative aligns with Mitsubishi and DGA’s wider decarbonization goals and supports emerging discussions on emissions trading frameworks between the Philippines and Japan.
Keppel’s involvement is expected to improve the project’s reach across voluntary and compliance carbon markets. “Keppel is pleased to welcome Mitsubishi and DGA, whose involvement opens up further opportunities for the offtake of transition credits in targeted voluntary and emerging compliance markets,” said Cindy Lim, CEO of Keppel’s Infrastructure Division.
Eric Francia, CEO of ACEN, described the expanded partnership as “a milestone in our collective efforts to address the enormous challenges of the energy transition.” He added, “We hope this will serve as a catalyst for other coal plant owners to embark on their clean energy journey.”
Mitsubishi and DGA are not new to ACEN. The companies have collaborated before on renewable energy projects, such as wind farms in Ilocos Norte. Their renewed involvement now strengthens ties with ACEN’s parent company, Ayala Corporation, and supports a broader alliance that includes GenZero and Keppel.
If successful, the initiative could serve as a scalable global model for phasing out coal-fired power generation in a financially and socially sustainable manner.
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