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Chile’s coal phase-out update and next steps
Carolina Gómez Environment and Climate Change
Division Ministry of Energy
June, 2020
-
20.000
40.000
60.000
80.000
1971 1980 1990 2000 2010 2019
GWh
Petróleo
Gas Natural
Carbón
Hidro
Biomasa
Solar
Eólica
Geotérmica
Natural gas imports begins
Natural gas supply cuts
Renewables growth
Droughts
40% of electricty generation is coal-based
Today the energy sector is the largest CO2 emitter
Source: Own elaboration based on data from the National GHG Inventory 2016
Carbon neutrality 2050
130
65
0
40
80
120
2015 2020 2030 2040 2050
MM tCO2e
Green Hydrogen (21%)
Energy Efficiency (7%)
Sustainable Industry (25%)
Electromobility (17%)
Forest Capture
Sustainable Building (17%)
Reference Stage
Carbon Neutrality Stage
Phase out coal(13%)
Forest Capture Maintaince
5
50% (65 MMtCO2e)
50% (65 MMtCO2e)
Phase- out coal is one of the principal measures to reach Carbon Neutrality
Carbon Neutrality
Voluntary Agreement for coal power plants withdrawal
1. Not to build new coal power plants unless they have CCS or similar technology
2. The Ministry of Energy will lead a working group with main stakeholders to establish criteria to provide a smooth transition to a low carbon economy in social, economic, environmental, health, employment and technical terms
3. To define a schedule to phase out or reconvert existing coal power plants
Voluntary Agreement was signed in January 2018 and ratified in May 2018, in the Energy Road Map 2018-2022
Coal phase out Roundatable 2018-2019
Kick off Meeting
June, 11
Starting Work
June, 26
Health and air quality
July, 24
International experience
August, 20
Electrical system impact
September, 25
Environmental issues
October, 23
TecnologicalAlternatives
November, 20
Economical and social impacts
December, 4
January 2019: Final Learnings Presentation
June 2019: Phase out of coal power plants schedule
Coal phase out Roundatable Stakeholders
Institutions
Private Engie
Private ENEL
Private AES Gener
Private Colbún
Institutions
NGO WWF Chile
NGO Casa de la Paz
NGO Chile Sustentable
Civil Society Civil Society Council of Min. of Energy
Institutions
University Pontificia Universidad Católica
University Universidad Adolfo Ibáñez
International Inst. GIZ – German Cooperation
Independent Inst. National Electrical Coordinator
Institutions
Public Ministry of Energy
Public National Energy Comission
Public Ministry of Environment
Public Municipality of Tocopilla
Institutions
Union Association of Electricity Generators
Union Coal Power Plants Syndicate
Clients Mining Council
Clients Unregulated Energy Consumers Association
Clients Consumers and users organization (ODECU)
3 plants have been retired since June 2019, having today 25 plants with 5197 MW.
At the end of this year, the central Ventanas 1 (Puchuncaví) and Bocamina 1 (Coronel) will be retired.
9
By 2024, 11 plants will be closed, which represent 31% of the coal capacity (1,731 MW)
28 Coal Units, 5 GW of installed capacity
Schedule of the first stage of coal-phase out Working groups every five years for schedule review
11
People-centered energy transition
Employment Associated with Coal Power Plants
• Direct employment: 4.391 people (contracts or subcontracts)
• Indirect employment: 9.505 people (value chain and its productive linkages)
• 0.17% of total employment in Chile (direct and indirect)
Iquique Mejillones Tocopilla Huasco Puchuncaví Coronel
Direct Employment
150 1,533 589 533 808 777
% of total in commune
0.14% 3.8% 4.4% 6.8% 1.6% 0.3%
Source: Study on Economic and labor impact of the withdrawal and / or conversion of coal units in Chile, IDB.
13
June 23, 2020 LAUNCH OF THE ELABORATION PROCESS OF
JUST TRANSITION STRATEGY IN ENERGY
J u s t T r a n s i t i o n M o t i v a t i o n
To reach an energy transition with
OPPORTUNITIES to the community.
to work in a COLLABORATIVE way with
all public institutions involved
To create effective participation with
community and organizations.
L o c a l
O p e r a t i o n a l
L e v e l
C e n t r a l
T t r a t e g i c
L e v e l
M a n a g e m e n t
L e v e l
L O C A L C O M M I T T E E
Local representatives, public services and companies at the community level.
Public services, companies, communities, unions, international agencies (GIZ, CEPAL, IDB).
E X E C U T I V E C O M M I T T E E
Executive Secretary (Ministry of Energy)
Other related Ministries Ministry of Energy Ministry of Labour Ministry of the Environment
I N T E R - M I N I S T E R I A L C O M M I T T E E
GOVERNANCE
Analysis of existing
information and
develop specific
studies
Diagnosis
Develop a structure
proposal and a
working plan with
definitions of
Objective, Vision,
Pillars
Strategy
Participatory
processes and social
dialogue (online
workshops)
Participation
The First proposal
for a Just Transition
Strategy
Proposal
Public Consultation
The Working Plan J U S T T R A N S I T I O N S T R A T E G Y I N E N E R G Y
Just Transition
Strategy
PUBLISHED
J U N E 2 0 2 0 J U L Y 2 0 2 0 D E C E M B E R 2 0 2 0
F I R S T S E M E S T E R
O F 2 0 2 1
17
T O C O P I L L A M E J I L L O N E S H U A S C O P U C H U N C A V Í C O R O N E L T A R A P A C Á
P H A S E O U T C O A L P L A N
Chile’s coal phase-out update and next steps
Carolina Gómez Environment and Climate Change
Division Ministry of Energy
June, 2020