Background of the Project/ Challenge
ACEN CORPORATION (ACEN), with its parent company Ayala Corporation, is demonstrating leadership in how Asian businesses can meaningfully transition towards a low-carbon economy, and follow through on commitments across its strategy and operations.
- In 2021, ACEN committed to reach net zero by 2050 or earlier.
- As part of its commitments and goals, ACEN transitioned its generation portfolio to 100% renewables by 2025, spun off all fossil-fueled capacity by the same year, and is working towards early retirement and just transition of the SLTEC coal plant by 2040 or earlier.
CSV has been a trusted advisor to ACEN in its sustainability journey, supporting its deepening ESG and decarbonization targets.
Completed and Current Projects
- ESG Policy Development: Crafted ACEN’s Environmental & Social (E&S) Policy Statement and Environmental and Social Management System (ESMS); established tools and metrics to assess project impact and recommended systems and protocols for the E&S team.
- Energy Transition Mechanism (ETM): Assisted ACEN in developing its ETM to accelerate the retirement of the SLTEC coal fired power plant (246 MW), by 2040, with proceeds directed toward ACEN’s renewable energy projects.
- Transition Preparation: Currently supporting ACEN in preparing for SLTEC’s transition to renewable energy, including stakeholder engagements (regulators, policymakers, lenders, internal workforce) and exploring potential use of transition credits.
Outcome
- The ESG policy and ESMS were developed with ACEN’s 2019 green bond offerings in mind, which ultimately secured IFC and ADB as anchor investors. These same frameworks have underpinned subsequent green bond issuances, collectively exceeding $1 billion in USD and PHP-denominated bonds, establishing ACEN as the largest green bond issuer in the Philippines.
- ACEN completed the world’s first Energy Transition Mechanism transaction: the SLTEC coal plant will be retired 15 years earlier than its technical life. See here.
Testimonials
Antonio Mariano C. Almeda
National Electrification Administration Administrator
“I want to emphasize that achieving sustainable energy access in off-grid areas is not merely an option, rather, it is an essential step for building resilient communities and ensuring social equity. This pursuit requires the collective effort of stakeholders across various sectors to make it into a reality.”
Mario Marasigan
Department of Energy Undersecretary
“Think bold, act collaboratively and commit firmly. Let us empower our cooperatives, support our investors, and work together to light up every corner of the country.”
Lawrence Ang
CSV Managing Partner
“This project builds on momentum generated by the Department of Energy leadership towards a more ambitious climate goal and complements the government’s work in transitioning the Philippines towards cleaner sources of energy. It also helps ensure that our off-grid islands are not left behind and are given access to more affordable, reliable, and cleaner electricity.”