ACEN's Green Gambit: A Decade's Journey to 100% Renewable Power

MANILA, Philippines – December 29, 2025 – In a landmark achievement for the Asia-Pacific energy sector, ACEN, the listed energy platform of the Ayala group, has officially completed its transition to 100% renewable energy generation across its operational portfolio. The milestone, announced today, caps a decade-long strategic transformation that saw the company pivot from a fossil fuel-dependent portfolio to a regional green energy powerhouse, setting a new benchmark for decarbonization in emerging markets.

This accomplishment stands in stark contrast to the company's profile in 2016. Back then, with 1,000 megawatts of installed capacity, renewables accounted for a mere 2% of its portfolio, which was predominantly anchored by coal. Today, ACEN boasts an attributable capacity of over 7 gigawatts (GW) in renewable energy projects that are operational, under construction, or have secured financing, demonstrating an aggressive and disciplined execution of its long-term vision.

"This milestone reflects our long-term strategy to align ACEN with the future of the energy system, while supporting decarbonization in a commercially disciplined way," said Eric Francia, President and CEO of ACEN. The company's journey offers a compelling blueprint for how legacy energy firms can navigate the complex path toward a sustainable future.

A Deliberate Decade-Long Pivot

ACEN's transformation was not a sudden shift but a calculated, multi-year strategy initiated nearly a decade ago. Recognizing the escalating climate crisis and the financial risks tied to carbon-intensive assets, the company embarked on a deliberate pivot. This involved a fundamental reshaping of its corporate strategy, a significant redirection of capital away from fossil fuels, and a concerted effort to build the internal capabilities required to develop, build, and operate large-scale renewable projects across diverse markets.

The core of this strategy was a two-pronged approach: aggressively scale up clean energy investments while systematically reducing and exiting its coal assets. This culminated in a portfolio that is now dominated by solar and wind power, with a total attributable capacity breakdown of 4,634 MW in solar, 1,957 MW in wind, 115 MW in geothermal, and a crucial 304 MW in battery energy storage systems to support grid stability.

This pivot has positioned ACEN as one of the fastest-growing renewable energy platforms in the Asia-Pacific, with the Philippines serving as its core market. The company now has a significant and diversified regional footprint, including a wholly-owned platform in Australia and operations in Vietnam, India, and Lao PDR, complemented by strategic investments in Indonesia.

The Financial Architecture of Transition

The financial engineering behind this rapid expansion is as innovative as its energy strategy. A cornerstone of its coal-exit plan was the pioneering use of a market-based Energy Transition Mechanism (ETM). In a world-first transaction completed in 2022, ACEN utilized this mechanism for the divestment and early retirement of its 246 MW South Luzon Thermal Energy Corporation (SLTEC) coal plant in the Philippines.

The ETM deal, which involved PHP 13.7 billion (US$236 million) in debt financing and PHP 3.7 billion (US$64 million) in equity, is designed to slash the coal plant's operational life by half, retiring it by 2040—a full 15 years ahead of schedule. This single move is projected to avert up to 50 million metric tons of carbon emissions. Crucially, the PHP 7.2 billion in proceeds ACEN received were directly reinvested into its growing pipeline of renewable energy projects.

To fuel its ambitious growth, the company has tapped heavily into green financing. It established a Green Finance Framework and successfully launched a P30 billion ASEAN green bond program, with proceeds directly funding solar projects. This is supplemented by syndicated green term loans, such as an A$277 million facility secured by its Australian arm. The company's robust balance sheet, with over PHP 25 billion in cash reserves, and a planned PHP 30 billion stock rights offering in 2025, provide the financial firepower needed to pursue its goal of reaching 20 GW of renewable capacity by 2030.

Powering a Region's Future Amid Headwinds

ACEN's achievement reverberates beyond its corporate headquarters, influencing the energy landscape across the Asia-Pacific. In its home market, the company is a key player in helping the Philippines meet its national goal of having renewables constitute 35% of the energy mix by 2030. With a projected 5-6% annual growth in electricity demand, ACEN's new capacity is vital for the country's energy security.

Its regional influence is exemplified by pioneering cross-border initiatives like the 600 MW Monsoon Wind project in Laos, which is set to become Asia's first cross-border wind farm, supplying clean electricity to Vietnam. This project underscores the potential for regional cooperation in accelerating the energy transition.

However, the path forward is not without challenges. The rapid integration of variable renewable sources like solar and wind places immense pressure on existing grid infrastructure. ACEN's leadership has publicly acknowledged that strengthening the grid is a critical priority, particularly in the Philippines, where transmission constraints and right-of-way issues can create bottlenecks. Furthermore, the company must navigate market volatility, policy fluctuations across different jurisdictions, and potential supply chain disruptions as it scales up its development pipeline.

As it moves beyond the 100% renewables milestone, ACEN's focus is expanding from pure capacity growth toward ensuring the transition is just and inclusive. The company has developed a Just Energy Transition roadmap to address the social and economic impacts on workers and communities affected by the phase-out of fossil fuel assets. This holistic approach demonstrates that ambition, when matched with disciplined execution and a sense of purpose, can deliver tangible impact and forge a sustainable path for the future of energy.