In the context of COP25: Chile’s Energy Minister announces early closure of coal generation plants

In the context of the COP25 Climate Change Summit, Energy Minister Juan Carlos Jobet and executives from Engie announced that the plants located in Mejillones (CTM1 and CTM2), which have a total capacity of 334 megawatts, are joining the first phase of the exit plan (2024).

 The government also reached an agreement for early closure of Ventanas 1 and 2, which are owned by AES Gener and have a capacity of 340 megawatts. The government will accelerate regulatory changes and transmission investments in order to make the closures viable.

 “This is excellent news for the Chilean people. These are nearly 700 megawatts of coal-powered plants that will close early and be replaced with renewable energies that will provide less expensive and cleaner electricity,” noted Energy Minister Juan Carlos Jobet.

 Chile plans to be Carbon Neutral by 2050. An essential part of that effort is removing plants that generate energy using coal. The first phase involved closing eight plants by 2024, which would cover nearly 1,000 megawatts. The dates had already been announced by the government and the companies that own them. The second phase involved the closure of the remaining 20 coal-powered plants by 2040.

 Forty percent of the energy produced in Chile is generated using coal, a fuel that contributes to local pollution and greenhouse gases that cause global warming.

 “We have been in talks with the generating companies to look at the option of closing coal-powered plants early. Today we are announcing that four will do so. All of them are located in high industrial concentration areas, and their closure will improve the quality of life of local residents,” Jobet said.

 Non-conventional renewable energies (NCRE) – solar, wind, geothermal, mini-hydro, biomass and others - already generate over 20% of the electricity that is consumed in Chile. “In fact, as a nation, we have met the 20% goal that we had adopted for 2025 six years early. Our projections are that the share of renewable energies, which are abundant in Chile, can increase a great deal. It is important to address the challenge of building transmission lines together, as these will allow us to bring this inexpensive, clean energy to consumption centers, and to make the necessary regulatory changes,” Minister Jobet explained.

 The energy sector is building 602 kilometers of transmission lines that come in addition to 63 generation projects totaling 3,562 MW, 97% of which are renewable energies. These projects represent a total investment of nearly US$10 billion.