Mitsubishi Corporation and its subsidiary, Diamond Generating Asia (DGA), have joined a consortium to explore a project aimed at retiring and replacing a 246MW coal-fired power plant in the Philippines with clean energy.
Mitsubishi and DGA have partnered with ACEN, Temasek-backed GenZero and Keppel as signatories to a memorandum of understanding established in 2024.
In 2022, listed Philippine company ACEN implemented the worldβs first market-based Energy Transition Mechanism, under which it divested the 246MW South Luzon Thermal Energy coal plant, and committed to retire it by 2040. The plant will transition to renewable energy technology.
Shinichiro Suzuki, CEO of DGA, said: βWhat makes this project truly unique is not only the early retirement of a coal-fired power plant, but also its replacement with equivalent generation of new renewable energy β enhancing both the scale of clean energy deployment and the integrity of the carbon credits generated.
βFor Mitsubishi and DGA, this initiative supports our deep commitment to decarbonisation and contributes to ongoing discussions on emission trading frameworks between the Philippines and Japan.β
Frederick Teo, CEO of GenZero, said: βAsiaβs energy transition presents a unique challenge: balancing decarbonisation with economic growth and energy security.
βTransition credits offer a groundbreaking solution by mobilising capital to accelerate the early retirement of coal-fired power plants while replacing the capacity with affordable clean energy and ensuring a just transition for surrounding local communities and industries.β
Cindy Lim, CEO of Keppelβs Infrastructure division, said: βThrough this pathfinding partnership, we aim to advance the clean energy transition by developing dispatchable renewable energy solutions with innovative financing mechanism, and contributing to a more sustainable future for Southeast Asia and beyond.β
Eric Francia, CEO of ACEN, said βThis partnership represents a milestone in our collective efforts to address the enormous challenges of the energy transition.
βBy pioneering the transition credits mechanism, we are not only accelerating decarbonisation but also demonstrating a viable pathway for coal-dependent economies to transition sustainably.β
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