Training its lens on the promising renewables market of Chile, French energy player Engie has decided to exit from the coal-fired power generation space here. Instead, it will be focused on developing 2 GW renewable energy capacity in the Latin American nation, all by 2025.
According to a comprehensive transformation plan submitted by the company to the Presidential Palace of Chile, Engie will close 6 coal fired capacity units, worth 800 MW and convert 3 new units with 700 MW capacity, to gas or biomass.
Of the 2 GW renewables capacity of wind and solar projects it plans to develop in the country, 600 MW is already under construction, and will involve an investment of €1.5 billion ($1.8 billion) by 2025. It includes addition of 1 GW capacity since 2019. These measures form part of Engie's carbon neutrality target it aims to achieve by 2050, while lowering its CO2 emissions by 80% from its Chilean energy production activities by 2026.
Green hydrogen is also part of its plan for Chile where it has developed 3 pilot projects, HyEx (with Enaex) to develop green ammonia, Hydra to promote truck mobility in the mining sector, and an initiative with Walmart to have 149 cranes powered by green hydrogen.
"At the end of February, the group announced the total exit of coal worldwide for the year 2027 and with the commitment we make today in Chile we are taking a fundamental step on this path," said ENGIE Group CEO, Catherine MacGregor.
In May 2021, Chile is expected to launch renewable energy auction to contract 2.31 TWh capacity, the National Energy Commission (CNE) announced in November 2020 (see 2.31 TWh Clean Energy Auction In Chile In May 2021).
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