ACEN Corp. to Fully Transition to Renewable Power by End-2025

Strategic Insights -

As part of its bold strategy, ACEN Corp., a subsidiary of the Ayala-led company, is divesting its remaining diesel assets by year-end. The move aims to achieve 100% renewable energy generation by the end of 2025. The company's executive committee has approved the sale of three special-purpose vehicles that own diesel plants to its majority shareholder, AC Energy and Infrastructure Corp. (ACEIC). The planned sale covers three power plants with a combined capacity of 189 megawatts. ACEN's goal is to transition into a pure-play renewable energy company, making it more attractive to investors who prefer companies focused on renewable energy.

Key Takeaways:

  • ACEN Corp. is divesting its remaining diesel assets to fully transition to renewable power by year-end.
  • The company's executive committee has approved the sale of three special-purpose vehicles that own diesel plants to ACEIC.
  • The planned sale covers three power plants with a combined capacity of 189 megawatts: Bulacan Power Generation Corp.'s 52-megawatt plant, One Subic Power Generation Corp.'s 116-MW facility, and CIP II Power Corp.'s 21-MW plant.
  • ACEN aims to achieve 100% renewable energy generation by the end of 2025.
  • The company is exploring the use of transition credits to accelerate the early retirement of its 246-MW South Luzon Thermal Energy Corp. coal-fired plant in Batangas.
  • ACEN aims to expand its renewables capacity to 20 gigawatts by 2030.
  • The company currently has a global generation portfolio of about seven GW spanning operational, under-construction, and committed projects.

Statistics:

  • 189 MW: Combined capacity of the three power plants to be sold.
  • 52 MW: Capacity of Bulacan Power Generation Corp.'s plant in Bulacan.
  • 116 MW: Capacity of One Subic Power Generation Corp.'s facility at the Subic Freeport.
  • 21 MW: Capacity of CIP II Power Corp.'s plant in La Union.
  • 246 MW: Capacity of South Luzon Thermal Energy Corp.'s coal-fired plant in Batangas.
  • 7 GW: Global generation portfolio of ACEN Corp. spanning operational, under-construction, and committed projects.
  • 2025: Target year for ACEN to achieve 100% renewable energy generation.
  • 2030: Target year for ACEN to expand its renewables capacity to 20 gigawatts.

Sources:

  • The STAR article, "ACEN Corp. to divest remaining diesel assets," Manila, 2023.
  • ACEN Corp. disclosure to the Philippine Stock Exchange, 2023.
  • Interview with investment banker Juan Paolo Colet, The STAR, 2023.