Transition credits will be utilized for this project.
A growing number of firms are teaming up with ACEN to investigate the utilization of transition credits for prematurely closing down and substituting the production from a 246-megawatt coal-powered station in the Philippines.
In a stock exchange submission, ACEN announced that Mitsubishi Corporation together with its affiliate, DiamondGeneratingAsia Limited (DGA), have joined forces with GenZero and Keppel Ltd. in this endeavor.
To commemorate this development, Mitsubishi and DGA entered into an agreement to join the memorandum of understanding formed in 2024 among ACEN, GenZero, and Keppel.
In November 2022, ACEN executed the globe’s inaugural market-driven Energy Transition Mechanism. This deal entailed the sale of the 246 MW South Luzon Thermal Energy Corp. (SLTEC) coal facility, with an agreement to decommission it by 2040—a timeframe that halves its usual operational lifespan of 50 years—with plans to shift towards renewable energy sources.
The Filipino energy firm aims to hasten the retirement timeline to 2030. They plan to achieve this through Transition Credits, which are high-quality carbon offsets awarded to initiatives facilitating the premature closure of coal facilities in favor of renewable energy sources.
This proposed collaboration seeks to assess the viability of utilizing Transition Credits via an groundbreaking project that illustrates how advanced financial tools can expedite the premature decommissioning of coal-powered facilities in favor of environmentally friendly, clean energy sources,” according to ACEN.
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