15 November 2023 – ACEN’s collaborative Energy Transition Mechanism (ETM) transaction continues to earn international accolades, most recently as the Asia Pacific Emerging Energy Deal of the Year awarded by Proximo, a global publication for project, infrastructure and energy finance, during the 2022 Deal of the Year Awards.
The award is given to a market-leading financing structure that supports regional decarbonization, with an innovative and responsible approach to avoiding further carbon emissions and steering Asia Pacific’s shift toward cleaner technology.
Through the ETM, ACEN divested its stake in the 246 MW South Luzon Thermal Energy Corporation (SLTEC), resulting in zero coal ownership in ACEN’s portfolio. The deal also cut the plant’s technical life by half, avoiding up to 50 million metric tons of carbon emissions. The move aligns with ACEN’s transition to 100% renewables in terms of generation output by 2025, all part of its commitment to reach net zero greenhouse gas emissions by 2050 or earlier.
Inspired by the ETM concept of the Asian Development Bank (ADB), ACEN’s ETM transaction is the first of its kind in the world and sets the tone for others to mobilize financing mechanisms to pursue a just energy transition.
ACEN CFO Corazon Dizon, who accepted the award during the awarding ceremony in Singapore, said: “The award inspires us even more to set an example in the energy industry and lead the charge in closing more groundbreaking deals aimed toward a sustainable future. While this has been a challenging financial transaction to close, we’re grateful to have earned the trust of debt and equity investors to execute this pioneering ETM deal and contribute a win-win solution to address climate change.”
Learn more about ACEN’s ETM.