EDP Anticipates Closure of Coal Plants in Portugal & Spain
The decision is part of EDP's decarbonisation strategy, which involves the early closure of plants in the Iberian Peninsula. In addition to Sines, the company is preparing to close one more plant and convert another unit in Spain. EDP will anticipate the closure of coal plants in the Iberian Peninsula and is preparing theforesees respective requests for the plant in Sines and for unit 3 in Soto de Ribera. In Aboño, also in Spain, a project is underway to convert the plant, which the replacement of coal by steel gases in the coming years. In the case of the Sines power plant, a declaration of waiver of the license of production was handed in to the Directorate-General for Energy and Geology so that it can shut down its activity in January 2021.
The decision, part of EDP group's decarbonisation strategy, was taken in a context in which energy production increasingly depends on renewable sources. In addition, with the increasing cost of coal production and the rising price of CO2 emission licenses, coupled with a worsening tax burden and with the increased competitiveness of natural gas, the prospects for the viability of coal plants have drastically decreased. An example of that is the activity of the Sines power plant, which has been halted since January 25, after a year in which the generation of electric energy from coal fell about 50% compared to 2018.
In view of this trend, EDP thus begins the process of closing the largest Portuguese thermoelectric plant (1180 MW of power) after 35 years in operation. The Sines power plant will still sell on the market the energy produced by burning the coal that remains in stock - and only then will it proceed with the decommissioning and dismantling of the plant.
EDP is now evaluating the development of a green hydrogen production project in Sines, in consortium with other companies. Part of a plan of common European interest and with potential for export by sea, this alternative under study for the production of a clean energy source may represent a new cycle for the region and for the national economy.
It is also expected that, through the Fund for Just Transition, the region can benefit from support that promotes the training of specialized professionals and the creation of qualified jobs in the region. EDP is also committed to fulfill all labor obligations towards the 107 workers at the plant and to ensure that the region can benefit from the support provided for in the Just Transition Fund, in order to create and reconvert jobs in that region.
Source : Strategic Research Institute