December 2022 – In 2021, ACEN announced its commitment to achieve Net Zero greenhouse gas emissions by 2050. This involves the transition of the company’s generation portfolio to 100% renewable energy by 2025, and the early retirement of the remaining coal plant that forms part of its retail electricity initiatives by 2040.
ACEN and the Ayala Group have been collaborating with global climate solutions provider, South Pole, in the calculation of a detailed greenhouse gas (GHG) footprint and the development of a robust Net Zero roadmap.
ACEN has made significant progress and completed the following:
- Reviewed existing scope 1 and 2 GHG reporting and aligned with reporting approach across the Ayala Group
- Screened all 15 scope 3 emission categories, according to the GHG Protocol, and developed a full GHG emissions inventory for all relevant categories
- Completed the report on scope 1, 2 and 3 GHG emissions inventory including emissions from own generating assets, retail activity and joint ventures
- Identified emissions intensive activities which include fossil-fuel generating assets; this further supports ambitious renewable energy growth strategy
- Started process for identifying emission reduction opportunities that can be considered as part of ongoing decarbonization strategy
In the coming months, ACEN will announce its strategy to become a Net Zero company by 2050. This will include assessments on potential emission reduction activities, and the establishment of near-term targets aligned with a science-based 1.5°C pathway across the core business units.
As part of its Net Zero journey, ACEN has committed to 100% renewables generation by 2025, which will result in zero Scope 1 stationary GHG emissions from the company’s generation portfolio.
To this end, ACEN completed last November 2022 the world’s first market-based Energy Transition Mechanism (ETM) transaction which will enable the early retirement of the remaining coal plant that forms part of its retail activities and its transition to cleaner technology. This entails the full divestment of ACEN’s equity stake in the 246 MW SLTEC coal plant, bringing the company closer to its commitment of 100% renewables generation by 2025. The entire ₱7.2 billion of proceeds received by ACEN will be reinvested in its renewable energy projects.
As part of the ETM structure, the coal plant’s operating life of up to 50 years will be cut in half, as the facility is scheduled to be retired and transitioned to a cleaner technology by 2040. This will help avoid or reduce up to 50 million metric tons* of carbon dioxide emissions . ACEN is collaborating with the SLTEC coal plant and various stakeholders, and is committed to a Just Energy Transition.
ACEN is the listed energy platform of the Ayala Group. The company has ~3,700 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia, with a renewable share of 93%, which is among the highest in the region.
ACEN’s aspiration is to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 20 GW in renewables capacity by 2030.