Why does coal play a key role in energy generation?

In a context in which the demand for energy is increasing, coal has become a key element to facilitate its generation. But, in addition to that, this mineral plays a main role both in the energy matrix and in economic matters.

This is highlighted by the National Association of Generating Companies (ANDEG), from where a call has been made to recognize the importance of this element within the energy transition in a discussion that goes beyond the environmental.

Andeg stressed that thermal plants, especially those that operate with coal, have proven to be essential. During critical episodes, such as the past El Niño phenomenon, they contributed to maintaining the stability of the National Interconnected System (SIN) and avoiding blackouts, ensuring a constant supply.

According to Alejandro Castañeda, president of the guild, “Currently, our country has 1,613 MW of installed centralized coal-fired thermal generation capacity, distributed among five companies that operate 14 generation units. During peak production periods, the average consumption of this solid fuel reaches 400,000 tons per month. This gives a clear idea of the role it plays in the electricity sector.”

Castañeda also mentioned that this material works as a control mechanism that regulates the offers of other technologies in the wholesale electricity market and establishes a reference for medium and short-term energy contracts.

In the case of the energy transition, the association pointed out that the debate has revolved around the substitution of traditional sources for renewable ones, without considering that these require backup technologies and guarantees to ensure an effective and timely implementation of new projects, as well as the electrification of the economy.

“International examples reinforce this idea. Germany, despite its strong commitment to the energy transition, has maintained the use of coal as a backup option to avoid energy crises. China, a leader in renewable energy, continues to invest in cleaner coal technologies to ensure stability in its electricity grid,” the Andeg chairman added.

Considering the weight that coal has in the value chain of the electricity sector, the guild stressed that it is essential to have the will to promote responsible mining strategies and promote the dignity of the work of small and medium-sized miners.