Philippines' AC Energy to fully divest coal assets by 2030
It plans to expand its renewables capacity to 5GW by 2025.
Philippines-based Ayala Corporation’s AC Energy has expressed plans to fully divest its coal generation assets by 2030, as part of its measures to minimise direct greenhouse gas emissions, the company announced. This is subject to review and finalisation by 2025.
Instead, the company plans to make new investments in gas-fired generation, which they deemed as a transition fuel and low carbon alternative to complement renewables.
In 2020, AC Energy plans to reach its renewables capacity to 1GW in 2020 and 5GW by 2025. The company is aiming for renewables to account for at least 30% of energy output by 2020 and no less than 50% of output by 2025.
It is also capping thermal capacity to no more than 50% of output, or at most 2GW by 2025.
According to the Institute for Energy Economics and Financial Analysis, the pandemic has compelled the Philippines to delay the building of import-reliant coal plants. “Out of the disruption comes an opportunity for cheaper, reliable and domestically sourced cleaner power for Filipinos,” energy finance analyst Sara Jane Ahmed said.