ACEN plans to tap transition credits for coal-fired plant

By Lenie Lectura – August 19, 2024
from Business Mirror

ACEN Corp., GenZero and Keppel Ltd. have signed a Memorandum of Understanding (MOU) to jointly explore the utilization of transition credits (TCs) to accelerate the retirement of the South Luzon Thermal Energy Corp., (SLTEC) coal-fired power plant (CFPP) in Batangas.

Under the MOU, the parties will jointly undertake a development study to explore utilizing TCs to facilitate the project’s implementation and achievement of the early retirement goal. The origination and sale of TCs will help to accelerate the decommissioning of the 246 MW SLTEC CFPP located in Calaca, Batangas by 10 years, and also support just transition initiatives.

“We appreciate the strong support of Keppel and GenZero for this pioneering initiative. The Philippines is at the forefront of energy transition initiative, and this collaboration potentially unlocks further opportunities in the country. We also believe that this model can scale across the region, and even globally,” said ACEN President Eric Francia.

The project will also explore the development of end-to-end technological solutions and economic model of the coal-to-clean transition focused on the replacement of the 246  MW baseload of the CFPP with a mid-merit Integrated Renewables and Energy Storage System consisting of solar plant and battery storage.

In retiring the SLTEC CFPP, the partners will also take into account environmental, social and governance considerations and best practices. This includes the training of workers and communities, asset repurposing and the decommissioning of the plant in a manner that minimizes the impact on communities and the local environment.

The project will be carried out in collaboration with the Rockefeller Foundation’s Coal to Clean Credit Initiative (CCCI) and the Monetary Authority of Singapore’s (MAS) Transition Credits Coalition (TRACTION). This project could also come under Article 6 of the Paris Agreement collaboration between the Philippines and Singapore.  Under Article 6, countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions to help one or more countries meet their climate target.