Decarbonization: AES Andes reports retirement of two thermoelectric units in Tocopilla by 2025
CE Noticias Financieras
New information is known regarding the decarbonization plan. AES Andes informed this Thursday the definitive disconnection of the coal-fired generation units Norgener 1 and Norgener 2 from the national electricity system by December 31, 2025. These units make up the Norgener Thermoelectric Power Plant with an installed capacity of 276 MW located in the commune of Tocopilla, Antofagasta Region. The withdrawal of these units, which had no committed date and were only considered in the initiatives that had been left for disconnection in 2040, was requested by the company today to the National Energy Commission (CNE), the Superintendence of Electricity and Fuels (SEC) and the National Electricity Coordinator. As detailed by the company in an essential fact sent to the Financial Market Commission (CMF), by virtue of the above and in accordance with its transformational strategy Greentegra, "AES Andes and its subsidiaries have committed to date, the cessation of coal operations of its power generation complexes: Ventanas, Angamos, and Norgener as of 2025, which represents the disposal of 1,693 MW of installed capacity" . As a result of the above, it was specified that AES Andes will record an impairment loss on Property, Plant and Equipment, which will affect the net result for 2023 by approximately US$ 200 million. According to the statement, this non-recurring accounting adjustment will have no impact on the company's cash flow. In a statement, the company indicated that it will continue to evaluate future options for converting the plant to emission-free technologies in line with its strategy. Once the Norgener units cease to operate, the company pointed out that annual emissions of approximately 1 million tons of CO2 will be reduced, which is equivalent to the removal of more than 400,000 private vehicles from the streets of Chile. Reactions In the same communiqué issued this afternoon, the CEO of AES Andes, Javier Dib, indicated that "the decision adopted by the company's board of directors ratifies our company's commitment to the decarbonization plan being carried out by the country". He also highlighted "the effort of our employees to make the change in our energy matrix a reality, reflected in their commitment to innovation and in the trust placed in the company, which translates into their integration into the Labor Reconversion Program that AES Andes launched in 2021". Dib also valued "the commitment and joint work with customers in the search for 100% renewable and competitive solutions for their operations, contributing in a material way to the country's electricity system". Meanwhile, the Minister of Energy, Diego Pardow, indicated that "this announcement is an opportunity to advance in the process of reconverting these thermal power plants, which will allow us to continue incorporating renewable energy into our productive matrix, in line with our commitments as a country to achieve carbon neutrality by 2050". The Secretary of State added that "we need to move towards a greener economy that allows us to maintain the productive vocation of these communities, generating more quality jobs while caring for the environment".