JERA, a Japanese energy company, has signed a share purchase agreement with Aboitiz Equity Ventures and Aboitiz & Company for the purchase of approximately 27 percent of Aboitiz Power Corporation’s (Aboitiz Power) outstanding shares for $1.58 billion.

JERA has also agreed to work with Aboitiz Power to source and manage liquefied natural gas (LNG) for potential LNG power plants to supplement intermittent renewable energy. JERA and Aboitiz Power are also interested in developing power projects, new generation technologies, and plant operations and maintenance participation. Aboitiz Power plans to increase its power generation capacity to 9.2 GW by 2030 and achieve a 50:50 clean energy and thermal capacity mix, to fulfill future electricity demand while promoting renewable energy in the Philippines. It is one of the largest power producers in the Philippines, with a well-balanced portfolio of assets spread across the nation.

The Philippines is experiencing rapid economic growth, and energy demand is expected to grow at a rate of 4.2 percent per year until 2030, making the development of electric power infrastructure a top priority. Like Japan, the Philippines has limited energy resources and must rely on imports to meet its energy requirements. JERA and Aboitiz Power are looking into developing zero-emission thermal power generation technologies that will help the Philippines reduce carbon dioxide emissions.