ENGIE Power Company has announced plans to move towards a more sustainable future by closing three of its South American coal plants. This will include two plants in Northern Chile and another in the South of Peru.
In total, they will close down nearly 1GW of coal-producing plants between the end of this year and 2024. They began in Tocopilla, this past June when they closed down units 12 & 13, together they produced 170MW. Moving forward they will close two more coal plants just down the coast in Mejillones, Chile, which are currently generating around 334MW.
The closure in Peru will be at plant 21, located in Ilo, which is on the southern coast and produces 135MW of power and is expected to close by 2022. ENGIE recently announced its plans for Peru and it involves investing nearly $1 billion for the construction of 1GW on new wind and solar farms. They have already started construction on Capricorn Solar Park and the Calama Wind Farm. The planned third park Tamaya Solar Park is scheduled to begin construction in the first quarter of 2020. They expect these 3 parks to combine for roughly 370MW output.
ENGIE’s CEO, Isabelle Kocher released a company statement:
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.
To help fund their investment, ENGIE signed a letter of intent with Inter-American Development Bank (IDB) for a long term renewables loan worth $125 million.
They said they are committed to developing innovative energy solutions and green mobility.
