Enel will exit Chile’s coal power sector early by bringing forward the closure of its Bocamina coal-fired power plant, located in Coronel.
The company’s Chilean subsidiaries Enel Chile and Enel Generacion Chile informed the market that their boards of directors took the decisions to accelerate the closure of the power station.
Enel Generacion Chile will request Chile’s National Energy Commission (CNE) to authorise the cessation of operations of the plant’s 128MW Bocamina 1 unit by 31 December 2020 the 350MW Bocamina 2 unit by 31 May 2022.
The original closure date for Bocamina 1 was by the end of 2023 and the closure of Bocamina 2 was set for 2040 at the latest.
Enel global power generation head Antonio Cammisecra said: “We will be the first power company in Chile to fully exit the coal sector, while continuing to safely build renewable capacity, with concrete benefits from an environmental, economic and social standpoint.
“This is fully in line with our Group’s decarbonisation strategy. Our approach addresses our people, and specifically those colleagues working in coal facilities and coal technology, who are given opportunities to retrain on other technologies within the group.”
Enel Latin America head Maurizio Bezzeccheri added: “Our group strategy is fully reflected in Latin America, where we are building renewable capacity to decarbonise the existing fleet alongside meeting the increasing needs of large commercial and industrial customers.
“Looking ahead, we will continue to leverage on our renewable generation fleet, coupled with our presence in the distribution sector of Latin American megacities and our footprint in the advanced energy solutions business, to foster proper sustainable development in the region.”
The net book value of the two Bocamina Units amounts to approximately €790m, including the related dismantling costs.
The decisions of Enel Chile and Enel Generacion Chile’s Boards of Directors could entail the recognition of an impairment on the assets involved in an amount of up to the net book value.
The associated financial impact will be reported in the half-year financial report of Enel Group on 30 June 2020.