ACEN, GenZero, and Keppel Corporation have signed a Memorandum of Understanding (MOU) to explore the development and utilization of Transition Credits (TCs) to fast-track the retirement of the South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant (CFPP) in Batangas, Philippines. The collaboration aims to replace the coal plant with a renewable energy facility, marking a groundbreaking initiative that could make SLTEC one of the world’s first coal plants to generate TCs.

This project underscores the partners’ commitment to advancing the clean energy transition in Southeast Asia, with the SLTEC CFPP’s early decommissioning by 2030 being a crucial step in reducing carbon emissions in a region that heavily relies on coal. Southeast Asia has the fourth-largest CFPP fleet globally, with an average plant age of less than 15 years, making the early retirement of such plants essential to achieving the goals of the Paris Agreement.

The signing ceremony, held in Singapore, was attended by prominent figures, 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. ACEN Chairman Cezar Consing and Keppel Infrastructure Division CEO Cindy Lim highlighted the importance of the collaboration, while GenZero CEO Frederick Teo emphasized the role of cross-border partnerships in achieving a just and equitable energy transition.

The partnership will also explore innovative end-to-end technological solutions and economic models for coal-to-clean energy transitions, including the development of a solar plant and battery storage system to replace the 246 MW baseload from the SLTEC CFPP. In doing so, the project will prioritize environmental, social, and governance (ESG) considerations, ensuring minimal impact on local communities and ecosystems while supporting worker retraining and plant repurposing.

This initiative is part of the Rockefeller Foundation’s Coal to Clean Credit Initiative and may also come under the Paris Agreement’s Article 6 collaboration between the Philippines and Singapore, offering a scalable model for global decarbonization efforts.

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