ENGIE to replace 1 GW of coal assets with 1 GW of renewables

  • ENGIE announces the closure of three additional coal units – two in Chile and one in Peru
  • In Chile, this announcement follows the commitment made with the government in June this year – closing of four units in Tocopilla – and the recently announced 1 GW renewables development plan

Within the framework of COP 25 in Madrid, ENGIE announces the closure of almost 1 GW of coal units in Chile and Peru between 2019 and 2024.

In Chile, ENGIE announces the closure of the two coal units located in Mejillones (334 MW) by 2024. In June 2019, ENGIE closed two coal units in Tocopilla (units 12 and 13, corresponding to 170 MW) and announced the closure of two more coal units in the same site (units 14 and 15, equivalent to 270 MW) by 2021. In Peru, ENGIE will close the Ilo 21 coal power plant (135 MW) by 2022.

ENGIE announced last week an ambitious renewables development plan in Chile, for the construction of 1 GW of wind and solar assets, for an investment of approximately USD 1 billion. The first two projects (Capricorn Solar Park and Calama Wind Farm) are currently under construction, while a third one (Tamaya Solar Park) will begin construction in the first quarter of 2020, thus totaling the first 370 MW of the plan.

In line with Chile’s decarbonization plan, ENGIE recently signed a letter of intent with the Inter-American Development Bank (IDB) to structure a long term loan for up to USD 125 million to finance investments in renewables. IDB has developed an instrument to lower the financial cost of renewable energy projects for companies that own coal-fired power plants, monetizing the reduction in emissions.

Isabelle Kocher, ENGIE’s CEO said: “ENGIE confirms the rapid movement towards a zero carbon transition. The previously announced closures of two units in Tocopilla, the announcement of the closure of two units in Mejillones by 2024 and of two more units in Tocopilla by 2021 are an important part of Chile’s plan. The Group has also accelerated the pace of renewable energy development in Chile by committing to build 1 GW, including 370 MW already secured. As a leader in zero-carbon transition, we have the expertise to design roadmaps to carbon neutrality with national governments, as well as with multinational companies, local authorities and universities. The end of coal-fired electricity generation is a process that creates value, both economic and environmental, when strategically planned.”

ENGIE is active in Latin America in power generation and transmission, gas transportation and distribution and energy supply and services. The Group is currently accelerating the development of solar and wind renewable capacities and is committed to developing innovative energy solutions while strengthening its activities in distributed generation and green mobility.

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