The coal-fired power plant is located in Coronel is the utilities last fossil-fuelled plnat in Chile.
Enel Generación Chile will file a proposal with the National Energy Commission asking for permission to close the plant by 2022.
The utility has plans to close Bocamina unit I (128 MW) by December 31 and Bocamina unit II (350 MW) by May 31st, 2022.
Initially, the plant was set for closure in 2040. The net book value of the two Bocamina Units amounts to approximately 790 million euros at the Enel Group level, including the related dismantling costs.
The development falls under plans by Enel to fully decarbonise its operations by 2050. The utility will complete 2GW of renewable energy capacity in the country by to compensate energy capacity to be phased out.
Enel has already closed the 158 MW coal-fired unit at Tarapacá power plant in December 2019.
At global scale, the Enel Group is increasing its managed renewable capacity to 60GW by 2022, from the current 46 GW.
Enel in Chile is the largest power company by installed capacity with over 7,200 MW of which over 4,700 MW from renewable energy.
Antonio Cammisecra, Head of Global Power Generation at Enel, stated: “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 decarbonization 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.”
Maurizio Bezzeccheri, Head of Latin America at Enel, said: “Our Group strategy is fully reflected in Latin America, where we are building renewable capacity to decarbonize 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.”