Ayala-backed ACEN Corp. is exploring ways to push for the early retirement of the 246-megawatt South Luzon Thermal Energy Corp. (SLTEC) coal-fired power plant in Calaca, Batangas using transition credits (TCs).

In a stock exchange filing on Monday, the listed energy company said it signed a Memorandum of Understanding with investment firm GenZero and infrastructure company Keppel Ltd. to put the vision into reality.

Under the deal, the parties will jointly explore the creation of comprehensive technological solutions and an economic model for the transition of SLTEC from coal to an Integrated Renewables and Energy Storage System, composed of a solar plant and battery storage.

The creation and distribution of TCs will contribute to speeding up the decommissioning of the plant by a decade—bringing the target date to 2030.

Once completed, SLTEC will become one of the first converted coal plant in the world to generate TCs.

“We appreciate the strong support of Keppel and GenZero for this pioneering initiative. The Philippines is at the forefront of energy transition initiatives, and this collaboration potentially unlocks further opportunities in the country. We also believe that this model can scale across the region, and even globally,” ACEN president and CEO Eric Francia said.