ACEN: First to Retire Coal Plant

In a pioneering move, Filipino billionaire siblings Fernando Zobel de Ayala and Jaime Augusto Zobel de Ayala, the chairman and vice-chairman of energy company ACEN, are looking to retire a coal-fired power plant located in Calaca town in the Philippines’ Batangas province, 25 years earlier than planned. This unusual and forward-thinking deal is the first of its kind in the world.

The Ayala brothers have long been scaling up wind and solar power through their company. Now, they are pioneering what’s known as the “Energy Transition Mechanism” (ETM) – a multi-billion-dollar initiative backed by eco-driven investment funds that enables the transition from grey to green power.

Under the ETM, the coal-fired power plant in Calaca will be retired 25 years earlier than planned, allowing renewable alternatives to be scaled up. This move is part of ACEN’s goal to become the largest listed renewables platform in Southeast Asia. Over the next decade, they plan to install 30 GW of “clean energy” – enough to power 26 million households.

ACEN is already among the region’s top renewable power generators, with operations in several countries including the Philippines, Vietnam, Indonesia, and India. Additionally, the company has ambitions to source 100 per cent of its generated electrons from renewables and transition its entire generation portfolio to 100 per cent renewable energy by 2025.

The pioneering ETM move by ACEN, with the support of institutional investors and a collaboration with the Asian Development Bank, sets a precedent for a market-driven effort to curb coal-fired power generation. The move could potentially help cut 50 million metric tons of carbon emissions.

The Ayala brothers’ ambitious vision goes beyond their business ventures. They see the battle against climate change as a key battleground, emphasizing the importance of sustainable and renewable energy in the global effort to combat climate change.

ACEN’s position as a leader in the renewable energy sector is not only an achievement for the company but also a significant contribution to the global fight against climate change. By sharing their success with other nations, ACEN hopes to inspire more companies and organizations to transition to renewable energy, ultimately having a positive impact on the planet.