ACEN, GenZero, and Keppel Corporation have officially signed a Memorandum of Understanding (MOU) to investigate the development and use of Transition Credits (TCs) aimed at expediting the retirement of the South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant in Batangas, Philippines. This partnership is set to replace the existing coal facility with a renewable energy solution, potentially positioning SLTEC as one of the first coal plants globally to produce TCs.
The initiative signifies a strong commitment to promoting a clean energy transition in Southeast Asia, with the goal of decommissioning the SLTEC CFPP by 2030. This early retirement is essential for reducing carbon emissions in a region that heavily depends on coal, which holds the fourth-largest fleet of coal-fired power plants worldwide, averaging less than 15 years in age.
The signing ceremony took place in Singapore and was attended by key stakeholders, including Singapore's Minister for Sustainability and the Environment, Grace Fu, and the Philippines’ Secretary for the Department of Environment and Natural Resources, Maria Antonia Yulo Loyzaga. During the event, ACEN Chairman Cezar Consing and Keppel Infrastructure Division CEO Cindy Lim underscored the significance of this collaboration, while GenZero CEO Frederick Teo pointed out the importance of cross-border partnerships in achieving a fair and just energy transition.
Additionally, the partnership will explore advanced technological solutions and economic models for transitioning from coal to renewable energy. This includes plans for a solar facility and battery storage system to compensate for the 246 MW baseload provided by the SLTEC CFPP. The project will also prioritize environmental, social, and governance (ESG) factors to minimize impacts on local communities and ecosystems while aiding in worker retraining and plant repurposing.
This initiative is part of the Rockefeller Foundation's Coal to Clean Credit Initiative and may also align with Article 6 of the Paris Agreement, offering a scalable framework for global decarbonization efforts.
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