The Government announced that 50% of coal-based electricity generation will be withdrawn by 2025, representing a breakthrough in the timeline of the national energy matrix’s retirement plan from the national energy matrix and bringing benefits to local communities where these facilities are located and will enable progress on climate change emission reduction commitments.
This update follows the measures reported by generator Engie that consist of the conversion of coal-fired power plants and strengthening its renewable energy investment plan for Chile and boosting new technologies, such as green hydrogen.
After participating in an activity in which the detail of the actions was delivered, environment minister Carolina Schmidt argued that “climate change is not quarantined and combating it is an ethical imperative that must be part of post-covid revival. This announcement goes in that line because it accelerates decarbonization with strong investment in clean energy, which supports our goal of being carbon neutral and climate-resilient.
“This is part of the fight against climate change as a state policy, which transcends governments on duty, and which must be the basis for clean, inclusive and sustainable development,” Minister Schmidt added.
In turn, the bi-minister of Mining and Energy, Juan Carlos Jobet, argued that “this transition to a cleaner energy matrix is a sign of our commitment to reducing local pollution and emissions from global warming. As we move forward in closing, we cannot forget that in these areas many people are working closely linked to these power plants, so we are making sure that they have a transition that offers them new opportunities.”
He added that “we will continue to look for spaces for companies to make additional efforts and thus further accelerate our ambitious coal withdrawal plan, always endosing security of supply for all,” he added.
Detail of Engie’s commitment
The CEO of Engie, Catherine MacGregor reaffirmed her commitment to the 800MW coal-fired closing schedule for 2024, which correspond to the company’s six oldest units and announced the conversion of the three newest units located in Mejillones to 2025: Mejillones Energy Infrastructure (IEM) inaugurated in 2019 will be converted to natural gas and Andean thermal power plants (CTA) and Hornitos (CTH) , opened in 2011, will start working with biomass.
Another important axis of the company’s announcement has to do with a renewable energy development plan in Chile totaling 2,000 MW, which involves the construction of around 1,000 MW of wind and solar projects in addition to the 1,000 MW already committed in the portfolio announced in 2019, of which there are already 550MW under construction.
According to the figures delivered by the company, the complete plan, which considers an investment of more than 1.5 billion euros per year 2025, will mean an 80% reduction in CO2 emissions by 2026. This will mean a reduction of 5 million tonnes of CO2 per year from current emissions, equivalent to driving 1.6 million cars (about 30% of Chile’s total car park).
MacGregor also reaffirmed the company’s commitment to the development of green hydrogen, considering the country’s excellent conditions and the advances of the National Green Hydrogen Strategy led by the Ministry of Energy.
Chao Coal: “Engie’s commitment reveals Aes Gener’s green makeup”
Citizen organizations members of the Chao Coal Coalition considered Engie’s announcements “to be a breakthrough for environmental and social justice in those communes that have had to endure the pollution and health damage caused by coal combustion of these industries, especially in Tocopilla and Mejillones.”
However, they stated that “we are concerned that gas conversion strategies will be seen as an incentive to use this other fossil fuel, delaying the achievement of the ultimate goal of the complete dephosilization of the energy matrix.”
They also noted that it is “also worrying the conversion of 2 power plants to biomass, considering that the use of biomass can generate between 3% and 50% more CO2 emissions per unit of energy, than coal, further threatening the vegetational masses that allow to capture CO2 emissions, incorporated as a commitment to carbon neutrality”.
They also stated that American Aes Gener “with 15 coal-fired power plants, has only compromised the closure of 2 of them, sold 5 units to other investors, and intends to rename Aes Andes, in an attempt to make up her unwillingness with a commitment to decarbonization and perpetuating her dirty and irresponsible business that harms the health of local populations and causes global warming.”
They also highlighted “the irresponsibility of Colbún, a Chilean company, owner of the Santa María en Coronel plant, which has made no commitment to decarbonize”.
Finally, the Chao Carbón coalition sued “Aes Gener and Colbún to present closing date for all their coal companies by 2025. We urge Chile’s Colbún and US-based Aes Gener to catch up, not only with the other transnational coal companies, but at the height of a second pandemic year in which the population impacted by the effects of coal-fired thermoelectrics is more vulnerable to aggravation if it is infected with covid19 and its variants.”
