Philippines: Conversion of a coal-fired power plant to 246 MW of renewable energy

ACEN, GenZero and Keppel join forces to convert a Philippine coal-fired power plant into a renewable energy facility by 2030, using transition credits as financial leverage.
Transformation of renewable coal-fired power plants

Partagez:

Leading energy players ACEN, GenZero and Keppel Ltd. announce a strategic partnership to convert the South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant in Batangas, Philippines.
This innovative initiative, which involves the early closure of the plant by 2030, is based on the use of transition credits, a financial mechanism designed to accelerate the reduction of carbon emissions.
In a context where South-East Asia has one of the world’ s newest and largest fleets of coal-fired power plants, this approach marks a decisive turning point.
If successful, the SLTEC project could serve as a model for other countries in the region, demonstrating the technical and economic viability of converting traditional thermal power plants into renewable energy infrastructures.

Financial leverage for energy transformation

At the heart of this project is the transition credit mechanism.
These credits, generated by the reduction in greenhouse gas emissions during the plant’s conversion, will provide crucial funding for the decommissioning of existing infrastructure and the installation of new renewable capacity.
The project involves replacing SLTEC’s 246 MW of baseload generation with an integrated solar generation and energy storage system, tailored to the region’s fluctuating energy needs.
This approach could circumvent the financial hurdles often encountered in energy transition, while promoting faster adoption of clean technologies.
The partners hope to pave the way for future similar initiatives, both in the Philippines and in other countries where dependence on coal remains a major challenge.

Social and environmental issues

The SLTEC project involves more than just technological conversion.
It also incorporates measures to mitigate the socio-economic impacts of plant closure.
Employee retraining, asset reallocation and management of the consequences for local communities are all integral parts of the approach adopted by ACEN, GenZero and Keppel.
Compliance with environmental, social and governance (ESG) criteria is a fundamental pillar of this initiative.
At the same time, the project is supported by international initiatives such as the Rockefeller Foundation’s Coal to Clean Credit Initiative and the Monetary Authority of Singapore’s Transition Credits Coalition.
These collaborations ensure that the transition credits generated meet the highest standards of environmental integrity, while facilitating their adoption on international markets.

Towards a replicable regional strategy

The innovative approach adopted for the SLTEC plant could well serve as a model for other energy transition projects in the region.
In particular, the integration of transition credits as a financial tool overcomes economic barriers that often hold back energy conversion projects.
This mechanism could also be used to meet the requirements of Article 6 of the Paris Agreement, which allows the transfer of carbon credits between countries to meet climate targets.
The Singaporean government has expressed interest in acquiring such credits, provided they meet Singapore’s rigorous sustainability standards.
This international recognition could enhance the credibility and attractiveness of transition credits, facilitating their integration into financing strategies for decarbonization projects across Southeast Asia.

Quinbrook Infrastructure Partners announces full operational launch of Cleve Hill Solar Park, now becoming the largest active photovoltaic power plant in the United Kingdom with a total installed capacity reaching 373 MW.
European photovoltaic module manufacturer BISOL is integrating G12R solar cells into its product range, replacing the former M10 cells, to improve product performance and technological competitiveness starting from the second quarter of 2025.
Adani Green Energy Limited becomes the first Indian company to achieve 15,539.9 MW of operational renewable capacity, cementing its position among the global top 10 independent green power producers.
Italian group Pronur establishes itself in Saudi Arabia with support from AstroLabs, aiming to provide advanced technologies in the renewable energy sector and develop new industrial partnerships.
Ascent Solar Technologies, Inc. announces the launch of a $2mn public offering to finance working capital, product development and general expenses.
Ardian Clean Energy Evergreen Fund takes control of 117 photovoltaic plants totalling 116 MW in Italy, further consolidating its presence in the country’s renewable energy sector.
Zelestra has secured $282mn financing from Natixis CIB, BNP Paribas and BCI for its Aurora project, combining a 220 MWdc solar plant and 1 GWh storage capacity in the Tarapacá region, Chile.
Egypt has been building an industrial photovoltaic solar complex in Ain Sokhna since June 19, aiming to stimulate strategic local production with a total investment of $200 million funded by the Chinese group Sunrev.
Générale du Solaire has inaugurated in Leutenheim, Bas-Rhin, a floating photovoltaic plant of approximately 20 MWc installed on a former gravel pit, marking the region's first large-scale project supported by successful local participatory funding.
Plenitude and Modine have signed an agreement to build a photovoltaic plant with an installed capacity of 1.585 MWp in Pocenia, designed to power thermal and refrigeration equipment at Modine’s Italian industrial site, without initial investment.
Namibia begins construction of its largest solar plant, Sores|Gaib, aiming to reduce dependence on energy imports by leveraging its solar potential, considered among the highest globally according to the World Bank.
Bangladesh’s interim government has ordered mandatory deployment of solar systems on public building rooftops to reduce reliance on costly fossil fuel imports amid a fragile economic backdrop.
The Energy Progress Report 2025 shows an improvement in global electricity access to 92%, but highlights that 666 million people remain without electricity, particularly due to insufficient international funding for rural areas.
Estimated at $384.4mn in 2025, the global photovoltaic panel recycling market is expected to grow annually by 7.4%, reaching $548mn in 2030, driven by the rapidly increasing number of installations reaching end-of-life.
Estimated at $613.57bn in 2025, the global photovoltaic market is expected to reach $968.32bn by 2030, driven by declining costs and growing demand from residential and utility sectors, according to a MarketsandMarkets analysis published on June 26.
Eurowind Energy initiates a €174.8mn investment to build a 220 MW solar park in Vișina, Romania, capable of supplying around 150,000 households annually.
CleanCapital expands its portfolio by acquiring solar and energy storage assets totaling 27 MW in California and Massachusetts from Pacifico Energy to meet growing demand in the United States.
BrightNight and Cordelio Power commission a major 300 megawatt solar project in Arizona, attracting significant investments from JPMorgan and Capital One, with estimated local economic benefits of $180mn.
Austria is launching an unprecedented 20% bonus on photovoltaic subsidies to promote equipment manufactured in Europe, with a total envelope of €20 million dedicated to solar installations and energy storage systems.
Chinese manufacturer Longi will invest alongside Pertamina NRE in a 1.6 GW site at Deltamas, aiming to strengthen the local photovoltaic chain and capture demand expected under Indonesia’s power plan.