Guacolda power station

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Guacolda power station (Termoeléctrica Guacolda) is an operating power station of at least 760-megawatts (MW) in Huasco, Atacama Region, Chile. It is also known as Huasco power station.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Guacolda power station	Huasco, Huasco, Atacama Region, Chile	-28.465013, -71.256541 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

• Unit 1, Unit 2, Unit 3, Unit 4, Unit 5: -28.465013, -71.256541

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year	Retired year
Unit 1	operating	coal: bituminous	152	subcritical	1995	2040 (planned)
Unit 2	operating	coal: bituminous	152	subcritical	1996	2040 (planned)
Unit 3	operating	coal: bituminous	152	subcritical	2009	2040 (planned)
Unit 4	operating	coal: bituminous	152	subcritical	2010	2040 (planned)
Unit 5	operating	coal: bituminous	152	subcritical	2015	2040 (planned)

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Unit 1	El Aguila Energy SpA [100%]	Capital Advisors
Unit 2	El Aguila Energy SpA [100%]	Capital Advisors
Unit 3	El Aguila Energy SpA [100%]	Capital Advisors
Unit 4	El Aguila Energy SpA [100%]	Capital Advisors
Unit 5	El Aguila Energy SpA [100%]	Capital Advisors

Financing

• Source of financing: Unit 5: US$318 million in debt from Itau-Unibanco and BancoEstado

Background

Launched in 1992, the Guacolda subcritical coal project supplies power to the northern sector of Chile's SIC (Sistema Interconectado Central) electrical grid. The first unit at Guacolda began producing power in July 1995. Additional units came online in August 1996, July 2009 and March 2010. Units 1-5 each have 152 MW of capacity.

The fifth 152 MW unit received its environmental permit in August 2010 and was constructed by Mitsubishi Heavy Industries, with operations scheduled to begin in the second half of 2015. In September 2013, responding to tougher new government pollution restrictions, the plant announced a deal with the Austrian company Andritz to acquire a selective catalytic reduction plant, four desalinization plants and technology for cleaning exhaust fumes, all expected to be in place by early 2016.

The new unit began operating in the fourth quarter of 2015.

Financing for Unit 5

In April 2013, a financing agreement for unit 5 was closed. US$318 million in loans was provided by Itau-Unibanco and BancoEstado.

Financial Outlook beyond 2025

In April 2022, Fitch Ratings downgraded Guacolda Energia SpA's ratings due to the company's uncertain financial outlook beyond 2025. Fitch noted Capital Advisors' "ambiguous business and refinancing strategy for the company's notes due 2025," and stated that given its status as a coal-fired power plant in Chile, Guacolda "will not easily access funding to refinance its bond."

Environmental Impact

In September 2017, César Araya, a government official for the Atacama region, announced the implementation of a new environmental management plan for the Guacolda plant, designed to improve air quality by imposing a 22% reduction in particulate emissions over a five- to 10-year period. Chilean environmental groups including S.O.S Huasco, Chile Sustentable and the Asamblea Freirina criticized the plan, asserting that it provided insufficient public health protections and gave local industry excessive leeway to regulate itself and delay meaningful emissions reductions.

In November 2020, the Guacolda plant transferred control of its network of 11 air quality monitoring stations to Chile's Ministry of the Environment. The move was intended to increase public confidence in data reported from these stations.

In May 2023, it was reported that the Guacolda power plant had been found responsible for the deaths of over 100 birds whose species is endangered, as well as the deaths of individuals from several other marine species. The Chilean Superintendence of the Environment (SMA) ordered the plant operators to immediately enact control measures to reduce future damage to local biodiversity, or face "a fine of up to 10,000 Annual Tax Units (UTA) or the closure of the establishment."

In August 2023, the power station faced eight charges for instances of environmental noncompliance which were reportedly responsible for the mass deaths of members of several marine and avian species.

Ammonia Co-firing

In December 2022, Mitsubishi Heavy Industries signed a Memorandum of Understanding with independent power producer Guacolda Energía SpA to begin a feasibility study for the introduction of ammonia co-firing at the power station. The study will be conducted in two phases through 2026. The company will target a combustion ratio of 30% ammonia, with the possibility of increasing the proportion in the future.

Ownership

As of March 2014, the plant was jointly owned by Chilean generator AES Gener (part of US-based AES Corp.) and the international investment fund Global Infrastructure Partners (GIP).

In 2020, WEG Group purchased GIP's 50% stake in the Guacolda power station. In February 2021, AES announced it would also be selling its shares of the coal plant to WEG Group.

However, WEG Group sold its ownership in the Guacolda power station's sponsor, El Aguila Energy SpA, to the firm Capital Advisors. AES then finalized a deal to sell its 50% stake in the power station to Capital Advisors in July 2021 as well, for a total price of US$34 million. These transactions leave Capital Advisors with 100% ownership of El Aguila Energy SpA and the Guacolda power station.

Opposition

In January 2010, the Health Service and the Agricultural and Livestock Service in Chile “requested that Huasco be declared a Latent Zone for Contamination” against the plans to build the Guacolda power station. They wanted to protect the health and environment of the people of Huasco. However, the Supreme Court permitted the construction of the Guacolda power station. Protestors and residents of Huasco disagree “because [their decision] was determined due to the needs of the mining industry. As a result, on January 18, 2014, residents of Huasco protested on the streets against the construction of the Guacolda power station. The plant was planned to be “the largest in the country” of Chile. Environmental groups said the construction of the power plant would result in the residents of Huasco “being sentenced to death.”

In 2017, environmental groups, such as the Freirina Assembly and the SOS Huasco Group, challenged the continued construction of the Huasco power plants. Though there was a “Atmospheric Prevention Plan” that outlined proposals for reducing the environmental damage of the Huasco power plants, leaders from the Freirina Assembly and SOS Huasco identified how “the plan does not [have] immediate measures” for a “serious situation [where] serious health problems exist.” The plan is also based on 2013 measurements of the plants and environment, which the environmental groups believe are outdated.

On October 30, 2018, a special report in Chile called “Quintero Plan that did not work” was broadcasted to denounce the “environmental scam” of the proposed plans to mitigate harmful effects from the Huasco power plants. The report cites how “the population [of Huasco] has been exposed for more than 40 years to heavy metals and chemo toxic gases,” yet the only things they have received from the government are “lies, cancer, and death.”

At the end of March 2019, the NGO Fima “presented a protection appeal against the Guacolda plant.” The appeal was specifically against units 1 and 2, which came into operation in 1995. Since the plants were built in 1995, the NGO Fima believes that these Guacolda plants are not following standards of the Environmetnal Qualification Resolution in Chile (RCA). They also cite how Huasco has been declared “a latency zone due to high levels of atmospheric pollution” emitted from the nearby coal plants.

On January 19, 2020, a study conducted by the Department of Public Health of the Catholic University concluded that “53% of women [in Huasco] had high concentrations of mercury in their body at dangerous levels.” With higher risks for cerebrovascular diseases, language learning disabilities, and pollution of the seawater, environmental groups are accusing the company in charge of the Huasco power plants, AES Gener. AES Gener has denied responsibility for the health of Huasco residents.

On March 12, 2020, the Huasco community demanded the closure of Guacolda 1 and 2 plants by 2022 and 2023. The demands are a result of the Huasco community being “exposed to high levels of pollution for another 20 years and suffering serious health impacts.” The leader of the Huasco community against the Guacolda plants, Doris Zamorano, stresses that “we need to stop getting sick!” The final decision on the closures is dependent on the Ministry of Energy.

In April 2022, the Huasco citizens group Consejo para la Recuperación Ambiental y Social de Huasco filed a case before the Appeals Court of Copiapó, calling for the urgent closure of units 1 and 2 to mitigate the Guacolda plant's adverse impacts on health and the environment.

Planned Phase-out

According to the Chilean Ministry of Energy's national decarbonization plan announced by President Sebastián Piñera in June 2019, all five units of the Guacolda (Huasco) power station will cease operations no later than 2040. Plant owner AES Gener agrees to consult with the government every five years to update details of the plan, taking into account system stability requirements, energy costs, and environmental goals.

Specific decommissioning dates are yet to be determined, but AES Gener's 2019 annual report lists expiration dates of 2020 to 2032 for current contracts at its Guacolda units. Chile's Ministry of Energy did not include the Guacolda power station in its list of plants to be disconnected in 2019-2024.

As of May 2024, the Guacolda units comprised five of eight remaining coal-fired units in Chile still lacking firm retirement commitments prior to 2040.

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.