ACEN green lights final tranche of energy transition financing
The company will divest its shares in SLTEC for P3.7b.
ACEN has approved the divestment of its shares in its subsidiary, South Luzon Thermal Energy Corporation (SLTEC) to ETM Philippines Holdings, Inc. and The Insular Life Assurance Company, Ltd. for P3.7b.
The ACEN noted that the proceeds from the divestment will be used to fund more renewable energy projects.
“This pioneering deal will allow the early retirement and transition of our coal plant to cleaner technology,” ACEN CEO Eric Francia said.
“We hope that this generates some momentum for the just energy transition in the region, and help towards the achievement of Net Zero.”
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According to ACEN, the transaction is considered the pioneer of energy transition financing in the country.
Through this, SLTEC’s coal-fired power plants are planned to be decommissioned by 2040, 15 years ahead of schedule.
It followed the principle of the Asian Development Bank’s Energy Transition Mechanism which seeks to accelerate the retirement of coal plants by 10-15 years.