Chile launches process to build decarbonization roadmap

Chile’s government began a collaborative process to discuss and build a decarbonization roadmap.

The focus of the process, which will involve multiple stakeholders and receive technical support from multilateral IDB, is 2030.

Under the country’s climate change law, a goal of achieving carbon neutrality and an emissions-free electric power system by 2050 was established.

Meanwhile, national energy policy sets the 2030 goals of generating at least 80% of power from renewable sources and installing 2GW of energy storage capacity.

A key challenge, a launch event was told, is ensuring conditions are in place to permit the continued retirement of coal-fired power plants. This would require generation, transmission (lines and grid technology) and energy storage investment and possibly outlay to extend the lifespan of LNG-fired plants. Design improvements to the wholesale power market to improve investment incentives are also deemed necessary.

“Decarbonizing isn’t just about retiring coal-fired power plants, it’s also about new reconversion opportunities, generating more jobs, investment and development of communities in harmony with the environment,” energy minister Diego Pardow said on social media platform X. 

As of 2019, Chile's installed coal-fired capacity was 5.5GW and by July this year it had dropped to 4.34GW. In 2025, capacity is expected to fall to 1.93GW, according to an energy ministry presentation.

These plants provide a grid stability role, which would need to be substituted.

ALSO READ: Chile’s coal-fired generation exit: The state of play

***

Two renewable energy projects for a combined US$913mn were submitted for environmental review.

The bigger of the two, US$623mn Wayra planned by EDF Chile, was previously in the system. Proposed for Antofagasta region, Wayra involves a 384MW wind park, 173MW of solar capacity, and a battery system with injection capacity of up to 750MWh. 

Work is penciled in to start in May 2026.

The other project is the US$290mn Carica wind park, planned for Coquimbo region. 

Proposed by Sonnedix, the project involves installing 92.4MW of wind capacity and a battery storage system with injection capacity of up to 400MWh. Construction is expected to start in May 2025.

Parque Eólico Carica participated in Chile’s 2021 regulated power supply auction. 

***

Chilean power generator Colbún and copper mining company Collahuasi signed a clean energy power-purchase agreement.

Under the 12-year deal, Colbún agreed to supply up to 650GWh/y to Collahuasi from renewable energy sources. 

In 2020, Collahuasi became the first mining company in Chile to have a 100% renewable energy supply. The contract will permit new mine projects under construction to also operate using only clean power, Colbún said in a statement.

From January 2024 to December 2025, some 230GWh/y will be supplied, and from 2026 to 2035, 650GWh/y, coming from existing renewables plants and projects yet to be built, Colbún said.

Colbún currently has 17 hydroelectric power stations for 1.6GW and three solar parks for 250MW. The company is also building what will be Chile’s biggest wind park, the 816MW Horizonte facility, and is bringing online the 8MW/32MWh battery storage system Diego de Almagro Sur.

ALSO READ: Colbún’s Chilean power generation projects
ALSO READ: Energy storage market deemed among the most promising by Wärtsilä