ACEN Sees Stronger 2026 Growth As Middle East Crisis Bolsters Case For Renewables
- April 14, 2026
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ACEN Corp., the listed energy platform of the Ayala Group, is projecting a stronger performance in 2026 despite mounting global risks tied to the ongoing Middle East crisis, with company executives pointing to growing demand for renewable energy (RE) as a key driver.
ACEN president and chief executive officer Eric T. Francia said the company’s operations both in the Philippines and overseas remain largely insulated from the volatility affecting fossil fuel-dependent markets.
“It’s not that impacted because we don’t rely on fuel and the tariff is fixed,” Francia said on the sidelines of the 2026 Philippine Energy Forum.
Global energy markets have been rattled by supply disruptions in the Middle East, pushing oil prices to sustained highs and exposing vulnerabilities in countries heavily reliant on imported fuel. The Philippines, which sources roughly 98 percent of its crude oil from Gulf states, has experienced record increases in domestic fuel prices.
While oil accounts for only a limited share of the country’s power generation mix, elevated prices have exerted upward pressure on broader energy costs, reinforcing calls to accelerate the transition toward indigenous energy sources.
Opportunity in Excess Capacity
Amid the current energy landscape, ACEN sees an opportunity to leverage its renewable portfolio and existing capacity.
Francia noted that the company currently has excess electricity available for sale, allowing it to offer more competitively priced energy to customers seeking alternatives to costly fossil fuels. “The silver lining is we have excess power to sell to customers. So, this is a good time to offer our renewable energy product,” he said.
He added that ACEN’s ability to maintain stable tariffs and avoid fuel cost exposure positions it favorably in a volatile pricing environment.
The company, which operates across multiple markets including Australia, Vietnam, India, Indonesia, Laos, and the United States, continues to benefit from diversified assets that are largely shielded from geopolitical disruptions affecting fuel supply chains.
Expansion And Asset Recovery
ACEN is also banking on operational improvements and new capacity to support its projected rebound this year.
Francia cited the continued contribution of large-scale power plants that commenced operations in 2025, alongside efforts to restore wind farms in Ilocos Norte that were previously damaged by typhoons.
“If you combine all that, I think this year should be much better than last year,” he said, expressing confidence that stronger output will help sustain the company’s investment pipeline.
The company’s outlook aligns with broader government efforts to fast-track renewable energy development. Energy Secretary Sharon Garin has said authorities are moving with urgency to ensure RE projects are completed on schedule or earlier to strengthen the country’s energy security.
Investment Risks
Despite its optimistic projections, ACEN acknowledged that macroeconomic pressures linked to the Middle East conflict could temper investment momentum.
Rising inflation and interest rates, coupled with potential supply chain disruptions, are expected to increase costs for renewable energy projects.
“You have to consider that there will be some cost pressure on renewables as well because of supply chain issues, delay issues, cost of capital increase and so forth,” Francia said.
These headwinds could influence capital spending decisions even as demand for clean energy continues to grow.
ACEN’s upbeat outlook follows a difficult 2025, when the company reported a 60 percent decline in net income to P3.8 billion from P9.36 billion a year earlier. Revenues also fell 14 percent to P32 billion, reflecting lower spot market prices and reduced power generation across its core markets.
The anticipated recovery in 2026 is expected to be driven by higher generation output, improved asset performance, and stronger market conditions for renewable energy.
Strengthening The Case For Energy Transition
For ACEN and other renewable developers, the current global energy crisis is reinforcing a long-standing argument: reducing dependence on imported fossil fuels is critical to ensuring energy security and price stability.
Francia emphasized that the situation underscores the need to accelerate investments in renewable energy and storage technologies, which can provide more stable and locally sourced power.
“There is a compelling case for more investment in renewables and storage to reduce dependence on fossil fuels,” he said.
As geopolitical tensions continue to reshape global energy markets, ACEN is positioning itself to capitalize on the shift, leveraging its renewable portfolio not only as a hedge against volatility but as a central pillar of future growth.
Source:
https://business.inquirer.net/584378/acen-sees-2026-a-better-year-despite-middle-east-war
