As part of its commitment to full decarbonisation by 2040, Endesa plans to close all coal-fired plants three years earlier than expected, in 2027. Because it is fully aware of the historical link it has had with these installations since the origin of the company itself, Endesa has developed a Fair Transition plan that aims to promote different initiatives that will have a positive impact on local communities from the social, environmental and economic points of view, what the company calls its Futur-e Plan.
The Futur-e Plans designed by Endesa for thermal installations in the process of closure are projects that aim to contribute to mitigating the impact that the closure of power plants may have on the local population through four axes: Proactive search for employment for the staff directly affected; promotion of economic activity within the area through new renewable projects, the dismantling of the plants and international tenders for the development of new industrial activities; training of the local population to enable the professional retraining of the people directly involved in these processes and to give the local population a future with regard to work; and sustainability initiatives within the municipality to mitigate the fiscal impact that the closures may generate within the municipalities, by promoting energy efficiency in these towns.
There are currently three Endesa coal-fired plants in the process of being closed down. These are the plants in Andorra (Teruel), Compostilla (León), and Carboneras (Almería). In 2019, Endesa also requested the closure of the As Pontes plant (A Coruña), for which a decision is expected this year, and the Es Murterar plant (Alcudia) in the Balearic Islands is operating with 2 of the 4 coal-fired groups it had, until it closes definitively. All these infrastructures have Futur-e plans which are adapted to the characteristics of each area.
ANDORRA (TERUEL) AND DEMOLITIONS
The "Teruel" thermal power plant, located in Andorra, was built between 1974 and 1979 in order to make extensive use of black lignite from mines located in the Turolense mining basin, mixed with imported coals. It was active for four decades and produced 224,000 GWh, equivalent to mainland electricity consumption for a year.
On 19 December 2018, Endesa submitted a formal request for closure. In parallel to the request for closure, Endesa voluntarily presented a Future Plan designed to compensate for the effects of the closure by means of a number of specific measures to promote the development of economic activities and job creation in the area around the plant.
In 2020 the plant closed down definitively, and a start was made on the application of the Futur-e plan to employ the workers of the plant itself and from the local area in dismantling tasks.
The dismantling of this plant, as well as that of Endesa's other plants, is an operation of great technical complexity that will mobilise about 200 people to work directly in each plant and they will be employed for 48 months. In all plants, the so-called selective demolition system will be applied to separate and classify each of the hundreds of thousands of tons of material that will be produced during the demolition. This method of demolition, together with the application of circular economy in waste management, will maximise use of the waste, either for subsequent re-use or as a raw material.
It will take 4 years to complete the dismantling work which will be done mostly by former contractors or residents in the region, since as part of its commitment to sustainability, Endesa gives priority in the tender for the award of the work to bids that include the largest number of local workers.
The Andorra plant is currently being dismantled, with hundreds of people working directly in these jobs for which specialised labour is required. For this reason, Endesa organised specific training courses to undertake these tasks among the local population as a means of promoting this workforce within the area. Endesa also presented an ambitious plan for the Andorra hub with projects that combine the industrial and social development of the area.
LITORAL (CARBONERAS-ALMERÍA) AND THE INTERNATIONAL TENDERS
On 16 December, Endesa disconnected the main generation equipment at the Litoral de Carboneras Thermal Power Plant in Almería after this iconic infrastructure had been in operation for nearly four decades. During its useful life it produced 183,628 gigawatt hours (GWh), equivalent to the electricity consumption of Andalusia for 4 and a half years.
This disconnection was accompanied by a Future-e plan on which it had been working for several years, as in the rest of the infrastructures in the process of closure. This involved launching an international tender to search for projects that would make economic and industrial development a reality in the areas once the plants had been definitively closed.
This unique initiative in Spain is in response to the Company's commitment to undertaking fair energy transition that involves replacing the generation capacity of coal-fired plants with clean and renewable technologies, as well as the generation of wealth and employment through the development of industrial projects that meet social and environmental sustainability criteria.
In the case of Litoral, the international tender for projects resulted in 14 binding proposals submitted by 10 different promoters which addressed topics relating to the circular economy, aquaculture, biofuels, tourism and logistics. A roundtable of experts involving all the entities is analysing the feasibility of each project with an eye on the area's future. Together with these tenders, Endesa is studying renewable projects at the site of each of its plants that will enable coal to be replaced with 100% green energies for generation.
The Litoral Thermal Power Plant is currently being dismantled by a local specialised company, under a process that respects the principles of circular economy, so donations are being made to entities in the area for the materials to be used, including the donation to schools of laboratory material from the old plants.
Meanwhile, assessment of the international tenders continues and has moved on to the next phase 6 for the initial projects, assessing those based on blue economy, biofuels and logistics.
COMPOSTILLA (CUBILLOS DEL SIL-LEÓN) AND FUTURE PROJECTS
The Compostilla plant is located between the municipalities of Cubillos del Sil and Ponferrada, in León. The installation is being dismantled, a process that will last about 48 months and on which 156 people are currently working, 78.2% of whom are residents in the region of El Bierzo, because Endesa gave priority to employing local residents.
The international tender launched by Endesa under the Futur-e Plan made it possible to select seven business projects that will be implemented in Cubillos del Sil. These initiatives will generate 160 jobs, with an investment exceeding €260 million, and they are clearly geared towards the circular economy. The new companies that Endesa is bringing to the area feature a wind blade recycling plant, in a partnership between Endesa, Prezero, General Electric and its subsidiary LM Wind Power. This factory will cover a severe shortage that affects the entire Spanish wind sector, where there is a lack of facilities to process the thousands of sets equipment that will be removed in the immediate future. The plant will be able to recycle about 2,000 blades per year.
Endesa's Futur-e plan will also enable Cubillos to be the location for a recycling plant for electric vehicle batteries, in which Endesa will participate with Urbaser through its subsidiary Sertego. It will be the first of its kind in the Iberian Peninsula and will require a complex logistics network. In both cases, construction of the installations is scheduled to begin in 2023.
In addition to the promotion of projects, Compostilla's Futur-e Plan foresees the development of 625 renewable megawatts in the area, whose construction will be a boost for the local labour market. The programme includes intensive professional training, with the organisation of courses for residents in the region. The training of workers in dismantling industrial installations has now been completed, together with that for the operation and maintenance of wind farms, and before the end of next June, four courses will have been given to photovoltaic installation personnel, bringing the total number of students to 460. The teaching activities are organised in collaboration with the Ciudad de la Energía Foundation (CIUDEN), of the Ministry of Ecological Transition and Demographic Challenge, and with the Santa Bárbara Foundation of the Castile-León Regional Government.
THE FINAL ONE, AS PONTES (GALICIA)
The As Pontes generation complex is located in the north of the province of A Coruña, in the municipality of As Pontes de García Rodríguez. In operation since 1976, it is the largest Spanish thermal power plant, with 1,400 MW installed. Over the years this plant has undergone three major reforms, to adapt to current regulations on environmental matters. The last of the updates required an investment of €270 million in the systems to reduce emissions into the atmosphere.
On 27 December 2019, Endesa officially asked the Ministry of Ecological Transition for permission to close the plant down. This process has not yet been completed, so the installation is available and under the responsibility of the system manager. However, the transition process has already begun, respecting the jobs of the 174 employees of As Pontes, who are being re-employed. Employees of the auxiliary companies will also have preference in the job opportunities that the future dismantling of the plant will generate, as well as in the development of the new renewable installations that Endesa has projected in the area. There will be a wide range of training courses to enable the transition from one activity to another.
The As Pontes Futur-e Plan includes significant investment in renewable energies. Endesa proposes to develop up to 1,505 MW of wind capacity, with an investment of €1,581 million and creating 125 stable jobs for its operation and maintenance. These plants will provide the clean energy and competitive prices that the Galician business fabric needs to maintain or create hundreds of jobs.
Endesa is also contemplating a search in Galicia for new business alternatives to the thermal plant that has been closed down, so once progress in the administrative process to complete the installation allows it, the Company will launch another international tender for projects. However, in order to gain time, Endesa is already working at a global level in the search for entrepreneurs wishing to take advantage of the industrial capabilities of As Pontes.