Progress in the Retirement of Coal Facilities in Chile and the Definition of a Just Energy Transition Strategy
This case study outlines Chile’s coal plant retirement plan and explores energy transition challenges in...
The Solutions Dialogues are a series of events initiated by the Powering Past Coal Alliance (PPCA), with the aim of strengthening commitment towards coal phase-out. The series takes place in the run-up to COP 29, which will be held in Baku, Azerbaijan, from November 11 to 22, 2024.
On August 29, the first regional Solutions Dialogue, with a focus on the Latin American and Caribbean (LAC) region, was held on the premises of Chile’s Coordinador Eléctrico Nacional (CEN) in Santiago de Chile.
PPCA member Chile has led by example, showing how coal-dependant countries can employ proactive planning to effectively phase out coal and benefit from the transition to renewable energies. As Diego Pardow, Chile’s Minister of Energy, highlighted in his introductory speech, the country has rapidly reduced the share of coal in its energy mix from 31% in 2013 to less than 14% in 2024. On a personal level, one of the minister’s first tasks in office was to attend the public closing ceremony of a coal-fired power plant. Impressively, the country has done this even as energy demand has continued to grow, becoming the world’s most attractive emerging economy for investment in renewable energies while retiring a comparatively young coal fleet.
Furthermore, Francisco Barros, Head of Business Development at Engie, Chile’s fourth-largest energy producer, pointed out that the company has committed to phasing out coal by 2025, while building renewable-energy parks and battery-based storage systems that provide flexibility to a rapidly decarbonising energy system.
The country’s Just Transition Strategy addresses the challenges created by the retirement of coal power for 13,000 workers and communities. One focus to counter these impacts is training. Veronica Vukasovic from GIZ shared her experiences in training coal miners and workers in coal-fired power plants to become lineworkers. These skills are in high demand for constructing and maintaining the high-voltage transmission lines that are needed as part of the expansion of renewable energies. With the increased fluctuation in power generation caused by this expansion of renewable energies, the stability of the grid and the security of the energy supply require attention in Chile and other South American countries.
The science is clear and the debate is over: to keep within reach of the 1.5°C climate threshold, we must phase out unabated coal-power generation as quickly as possible, everywhere. To do this, other countries can learn from the progress in the LAC region, raise their ambition, and advance the implementation of a coal-to-clean transition.
A more detailed summary of the Santiago Solutions Dialogue is available on the PPCA website. Read more about the Solutions Dialogues series here.
Receive updates on just energy transition news, insights, knowledge, and events directly in your inbox.