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Enel Chile outlines state of play for retired coal plants
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Electricity generator Enel Chile continues mulling options for its retired coal-fired power plants but rules out any form of thermoelectric investment at the assets, CEO Fabrizio Barderi told BNamericas.
That exclusion includes projects like the Alba molten salt-based conversion initiative planned by fellow player AES Andes at its Angamos complex in Antofagasta region, which is expected to receive a permitting decision this week.
Officials at Italian-owned Enel – Chile’s decarbonization pioneer – are analyzing possible next steps, which could include using the brownfield land for battery storage systems.
“We’re still evaluating different alternatives for our plants,” said Barderi. “There are potential different uses.”
In 2022, Enel disconnected the second unit of its Bocamina complex in Biobío region, becoming the first generator in Chile to stop using coal for electricity production. Enel's other coal asset was its Tarapacá plant in the region of the same name.
“What's clear is that we’re not going to have thermal production again at these facilities; that’s the only certain point,” Barderi said after outlining the company’s 2024-26 strategic plan, which includes ramping up battery storage investment by 0.5GW.
In terms of overall generation investment under the plan, Enel aims to add 1.3GW, comprising 0.3GW wind, 0.2GW solar PV, 0.7GW storage and 0.2GW hydropower. Enel has assigned US$1bn for renewables and US$600mn for battery storage. Officials are analyzing whether to opt for two-hour duration units – suited to the ancillary services market – or longer-duration variants, geared to energy shifting.
Enel has also earmarked US$300mn for its thermoelectric business line, which today comprises oil-fired and natural gas plants.
By end-2026, Enel Chile’s net installed capacity is forecast to stand at 9.9GW, comprising 37% hydropower, 35% non-conventional renewables (NCRE), 21% thermoelectric and 8% battery storage. At end-September, net installed capacity was 8.8GW, comprising 40% hydropower, 37% NCRE and 24% thermoelectric.
Amid transmission congestion chiefly impacting generators in the north, Enel is targeting investment further south. Among its portfolio, the company has a shovel-ready wind project in Biobío region, the 120MW Rihue, which has a 34MW storage system, according to a Q3 investor presentation.
In a context of growing renewables penetration and of transmission congestion, energy storage is seen as an attractive option to help support Chile’s ongoing decarbonization. Systems can provide grid stability services as well as store power in the day and inject it back into the grid when the sun goes down and spot prices are higher. Flexible gas-fired plants are also seen as playing an energy transition role.
Chile’s regulatory framework for energy storage systems incorporated into power generation parks is largely complete. Stakeholders are awaiting more rules of the game – expected next half – for standalone systems.
COAL EXIT
Along with AES Andes, Engie is working to exit coal-fired generation. According to an Engie presentation, work involves changing the 375MW power station Infraestructura Energética Mejillones in Antofagasta region to LNG and converting its two Andina units, also in Antofagasta, to run on biomass.
As things stand – and if grid stability conditions permit – AES Andes and Engie could cease coal-fired generation by the end of 2026. That would leave only the relatively new single-unit Santa María de Coronel plant in Biobío region. The power station is operated by Colbún, which like Enel, AES Andes and Engie is expanding its renewables park and investing in storage. Colbún has an innovative pumped storage system on its radar.
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