AC Energy, the power arm of the Ayala Group, will leverage on the innovative energy transition mechanism (ETM) to ensure the early retirement of its remaining coal plant.
ACEN is moving to convert its remaining coal plant into renewable energy by 2040 or 15 years ahead of its technical life.
The company is now readying documents for the refinancing of its subsidiary, South Luzon Thermal Energy Corp. under an energy transition financing with certain banks.
SLTEC owns a 270 megawatt coal plant in Calaca, Batangas.
The ETM is an innovative funding mechanism that leverages low-cost and long-term funding geared towards early coal retirement and reinvestment of proceeds to enable renewable energy.
BPI Capital Corp. will be the lead arranger for the ETM.
The National Association of Electricity Consumers for Reforms Inc. (Nasecore) has criticized the Energy Regulatory Commission for permitting bilyonaryo Manny Pangilinan-led Manila Electric Company to charge consumers the provisional interim average rate of P1.3810 per kilowatt hour from July 2016 to the present.