NOV. 5, 2021

Chile announces that it will work to put an end to coal use by 2030 after joining the Powering Past Coal Alliance

Chile has been invited to become part of the Powering Past Coal Alliance (PPCA), which brings together governments, companies and organizations working to speed up the transition from coal-fired power generation to clean, renewable energy. 

As part of the COP26 Energy Day currently taking place in Glasgow, United Kingdom, Energy and Mining Biminister Juan Carlos Jobet announced Chile’s incorporation into the Powering Past Coal Alliance (PPCA). The alliance is a coalition of governments, companies and organizations working to speed up the transition from coal-fired power generation to clean, renewable energy. 

Speaking from Europe, Minister Jobet pointed out that, in Chile, “we have agreed to put an end to coal use by 2040 at the latest, and we are working to achieve this by 2030.” He added, “the low price of coal is actually a big lie, because we only pay for a part of it, while we let the rest be paid as a time bomb for future generations.” 

The PPCA is currently made up of more than 150 countries, cities, regions and companies, who are taking concrete steps to meet coal phase-out dates and drive the global energy transition. 

Claudio Seebach, Executive Chairman of the Chilean Association of Power Generators, Generadores de Chile, commented on the agreement, saying, “Chile’s decision to join the Powering Past Coal Alliance reaffirms the commitment to climate action being made by the country, its companies and Generadores de Chile. Through the public-private agreement, we have been pioneers in the commitment to phase out coal, in addition to seeking to accelerate this transition responsibly, by promoting the necessary conditions, such as increased renewable energy generation as a replacement, and the necessary transmission and storage capabilities that make it possible”. 

In addition to the initiative, Minister Jobet will sign the “No New Coal” pact tomorrow, also as part of COP26. This is a United Nations initiative that seeks to encourage other nations to stop the construction of coal-fired power plants. 

Coal Phase-Out Plan

The Plan de Retiro del Carbón (Coal Phase-Out Plan), led by Energy and Mining Biminister Juan Carlos Jobet, is one of Chile’s strategic axes to combat climate change and achieve carbon neutrality by 2050. 

The Government committed in 2019 to close all of Chile’s coal-fired power plants by 2040. This original timetable has been constantly modified and brought forward. 

To date, five power plants have been closed out of the 28 that existed in 2019. They are Tocopilla U12, Tocopilla U13, Ventanas 1, Bocamina 1 and Tarapacá. This is equivalent to almost 20% of the total number of coal-fired power plants in Chile. 

In July 2021, Minister Jobet announced that 65% of coal-fired power plants will have been retired by 2025. This will mean the closure of all coal-fired power plants in Puchuncaví and 80% of those in Mejillones by 2025. To achieve this plan, it is crucial to have conditions in place that enable the necessary transmission and flexibility of the electricity system, in order to maintain a reliable and resilient system.