Endesa To Replace Coal Plant In Portugal With Solar+Storage

• Endesa has proposed to replace its Pego Coal Power Plant in Portugal with solar and storage capacity
• The €600 million project includes 650 MW solar, 100 MW battery storage capacity along with green hydrogen production capacity of 1,500 tons annually
• Portuguese government is expected to take a call over the technology and project that can replace the coal project

Spanish electricity utility Endesa will shutter its Pego Coal Power Plant in Portugal as planned by November 2021, and plans to replace it with a 650 MW solar power plant, accompanied by 100 MW battery energy storage capacity. It will also install an electrolyzer on location with enough capacity to produce 1,500 tons green hydrogen annually.

To be built for €600 million, the project was presented by the company after it – along with its joint venture partner Tejo Energia – conducted feasibility studies for reuse of the coal project site, and initially thought of biomass as an option. However, factoring in insufficient forest residues to feed the plant in a sustainable way, eventually the project partners agreed on solar PV technology.

Green hydrogen generated on site is aimed to be supplied to industrial clients in Medio Tejo region to support decarbonization efforts of the regional industry, explained Endesa, and added that the project may be expanded later.

Endesa, which is part of Italy's Enel Group, said it will work with local public administrations in Medio Tejo region to promote the establishment of future technological clusters in Pego. Such plans are aligned with the company's aim to become CO2 free in its emissions by 2050.

It believes that the renewable energy project designed to replace the Pego coal plant has the potential to become a reference for energy transition in Portugal.

"Endesa hopes that the Portuguese government will initiate a process to choose the project that will replace the coal power plant, in defense of both the interests of the national electricity system and the principles of the just transition," stated the company.

Pego Coal Power Plant happens to be the last remaining coal project in Portugal and its end would mean the country would become coal free by the end of 2021, according to Euractiv. In July 2020, Portuguese utility EDP said it will shut down 1,296 MW Sines Coal Power Plant in Portugal within 2021.

In February 2021, Endesa proposed to develop 23 renewable hydrogen projects in Spain, to be powered by 2 GW solar and wind power capacity (see 2 GW RE To Power 340 MW Electrolyzer Capacity).