Our Work

Mejillones’ Local Energy Strategy

Climate mitigation and Adaptation Plan

Mejillones transitions from coal to clean energy

Client

Chile’s Energy Sustainability Agency (Agencia de Sostenibilidad Energética);
Municipality of Mejillones

Population

15,000

Schedule

2023-2024

The Problem

Long a major industrial and mining hub, Mejillones, Chile, is grappling with pollution, inequality, and blackouts following recent coal-plant closures. Known as a “Zona de Sacrificio” (sacrifice zone) where industrial activities have harmed the local environment and residents’ health, the town stands at a crossroads as it works to shift toward sustainable, community-driven energy development.

The Problem

How can Mejillones build a reliable, sustainable energy system that supports local development?

63%

of local generation capacity is coal-fired (2022)

23h

average hours of power outages annually

The Solution

To accelerate Mejillones’ energy transition, SSG partnered with local consulting firm Ecological and the Mejillones government to design the Local Energy Strategy, which combines solar rooftops, efficiency upgrades, and workforce training, to achieve carbon neutrality by 2050. The measures aim to reduce blackouts, cut emissions, and create jobs while making the most of the community’s limited resources.

SSG conducted in-depth analysis of electricity supply and demand, renewable energy potential, and energy efficiency opportunities to support Mejillones to develop a clear roadmap for reducing emissions. The Strategy was also informed by a participatory process that brought together 54 representatives from government, the private sector, and civil society for three community workshops in March and April 2024.

The Strategy includes three flagship initiatives identified as priorities by community participants:

  • A subsidized residential solar roof program with batteries

  • Energy efficiency upgrades in public buildings

  • An agreement with the private sector to provide employment training

Together, these measures will diversify the energy mix, reduce power outages, cut pollution, strengthen community resilience, and create jobs.

The Outcome

The plan sets ambitious goals for clean energy, grid reliability and energy efficiency:

15%

target reduction in average energy consumption of medium and large companies within 10 years

50%

of homes and public buildings to be equipped with solar panels within 15 years

83%

target reduction in average annual hours of power outages

as compared to a business-as-planned scenario. See the Local Energy Strategy (ES) for more information.

Outcome

Key Takeaways

Subsidized solar roofs improve access to hot water and reduce outages.

A key initiative of the Strategy is expanding access to residential solar energy. Measures to install photovoltaic panels and battery storage on homes will reduce the frequency and impact of outages while giving nearly 400 homes access to hot water.

The Mejillones government leads with energy efficiency improvements to public infrastructure.

The Strategy prioritizes an energy-efficiency program for Mejillones’ highest-consumption public buildings. By improving lighting, air conditioning, and other systems, the municipality can cut electricity costs and demonstrate leadership in reducing emissions. The municipality will start out by targeting five energy-intensive facilities, including the stadium, cultural center, and municipal offices.

Occupational training and job creation supports sustainable energy projects.

An agreement between the Municipality of Mejillones and the industrial sector will support clean-energy training and employability programs amid coal-plant closures. This measure will offer specialized training to residents to prepare them for jobs in the clean energy sector.

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