Insular Life, EPHI to fund Ayala’s coal plant retirement in the Philippines

Insular Life (InLife) has inked an agreement with a subsidiary of AC Energy (ACEN) Corporation for PHP1 billion worth of preferred shares in the South Luzon Thermal Energy Corporation (SLTEC) , the corporate vehicle of Ayala group.

ACEN’s remaining stake in SLTEC, amounting to PHP2.7 billion worth of share, has been acquired by ETM Philippines Holdings Incorporated (EPHI). Proceeds from this exercise will be used to fund the retirement of Ayala’s SLTEC coal-fired power plant in Calaca, Philippines through the energy transition financing (ETF) mechanism as well as for developing more renewable energy projects in the country. The Ayala firm specified that it will be retiring the asset at least 15 years ahead of schedule based on the full life cycle of the coal plant, which can typically stretch for 40 years.This move is a part of ACEN’s aim to achieve net zero greenhouse gas emissions from operations by 2050.