ACEN is considering transition loans to accelerate the phase-out of coal-fired power plants

ACEN Corporation believes that transition credits can play a key role in facilitating the earlier retirement of coal-fired power plants and their replacement with renewable energy (RE).

In a Manila Standard report, ACEN CEO Eric Francia said it is important to overcome the notion that humans are not responsible for climate change; however, interim credits are now forcing everyone to rise to the occasion.

ACEN, together with partners GenZero and Keppel Ltd., is exploring the use of interim credits to accelerate the decommissioning of the 246-megawatt South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant in Batangas.

The facility will be replaced by a clean energy transmission system and, upon completion, is expected to be one of the world’s first coal-fired converted power plants (CFPPs) to generate transition credits.

During the panel discussion, Francia emphasized the importance of a just energy transition that ensures the protection of vulnerable communities as we transition from coal to renewable energy.

He also highlighted the significant role that transition loans can play in addressing many of the challenges emerging markets face during the energy transition, such as resource constraints, land and infrastructure issues, and the high cost of replacing renewable energy.