Argus Media

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6 Oktober 2025 pukul 00.00

Chile seeks investment to phase out coal plants

Chile has launched a decarbonization plan that emphasizes the role of investment in new assets to ensure the grid's resilience and flexibility as coal plants are closed or converted.

The plan focuses on enabling renewables, transmission assets and technological changes to replace the ancillary services supplied by coal to "ensure the lights stay on", energy minister Diego Pardow said at the plan's presentation on Thursday.

Chile has closed 11 coal plants for a combined 1.7GW since 2019, mainly aging plants. It is committed to closing by 2040 the remaining 17 plants that have a combined 3.8GW of capacity by 2040.

The plan proposes to fast track critical investments which, in turn, will be required to finance energy projects for affected area communities such as rural electrification or distributed generation initiatives.

The social energy initiatives will be financed with 5pc of the investment value of the fast-tracked decarbonization projects, Pardow told Argus. It is expected to support social acceptance of new large infrastructure projects.

The government expects to send a bill to congress in December to enable these changes.

The plan aims to convert coal plants' infrastructure to other technologies such as gas, biomass, storage or synchronous condensers to reuse infrastructure and preserve jobs.

As an example, French Engie has begun building the 140MW Lile standalone battery energy storage system in its operating Mejillones thermal complex in northern Chile.

Lile will have storage capacity of 802MWh and use the complex's transmission lines, substation, internal space and roads, reducing financial and social impacts. It is expected to start operations in the second half of 2026.

The French company also plans to convert the complex's IEM coal unit to gas, with a view to closing the complex's five coal units by the end of 2026.

The rapid deployment of Bess in Chile has attracted investment of $8bn, said Pardow.

Chile's decarbonization plan also seeks to adapt regulations to a renewables-focused power system and strengthen transmission planning and operations.

Renewables represent around 70pc of Chile's power generation and it is committed to their participation reaching 80pc by 2030 and 100pc by 2050.

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Alamat Sekretariat.

Menara Kuningan Building.

Jl. H.R. Rasuna Said Block X-7 Kav.5,

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Alamat Sekretariat.

Menara Kuningan Building.

Jl. H.R. Rasuna Said Block X-7 Kav.5,

1st Floor, Suite A, M & N.

Jakarta Selatan 12940, Indonesia

Email Sekretariat.

secretariat@apbi-icma.org

© 2025 APBI-ICMA

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