La Andorra Thermal Power Plant It was for decades one of the economic and industrial pillars of the Teruel region. After the definitive closure of the plant on June 30, 2020, the region has experienced a period of uncertainty and transformation. Since then, the process of Decommissioning was completed in July 2024, marking the end of a period for the local economy and the beginning of new challenges linked to the energy transition and industrial reconversion.
During these five years, the social and political debate The crisis has revolved around the lack of solid employment alternatives and the limited progress in recovering lost jobs. Meanwhile, the region has seen how the promise of a just transition has been diluted by investment announcements and administrative delays.
Dismantling and legacy
La useful life of the Andorra Thermal Power Plant It lasted for more than forty years, after its construction between 1974 and 1979. Endesa requested its closure in 2018, a decision driven by European environmental requirements and the impossibility of facing the large investments required to adapt the plant to the new emissions regulations. The shutdown led to the dismissal and transfer of numerous employees and the beginning of a dismantling process which mobilized up to 312 workers, many of them from the region itself.
The dismantling included the demolition of emblematic elements such as the chimney and cooling towers, generating some unrest over the loss of industrial heritage. The project involved an investment of €60 million, but its long-term impact on the region is still far from offsetting the loss of hundreds of direct and indirect jobs.
Support and employment plans
Following the closure, Endesa announced a support plan to reactivate employment and the local economy, as well as to support a just transition. The program includes the implementation of up to seven hybrid renewable projects, two battery storage projects, a hydrogen station, and several social and environmental projects. So far, only Two solar parks have started operating, and its impact on stable job creation has been limited: just half a dozen long-term permanent positions.
El Mayor of Andorra Union representatives agree that the processing and implementation of the initiatives has been too slow, with no tangible results to date. Many former plant workers remain displaced outside Aragon, awaiting the promised relocation, while employees of subcontracted companies have lost their jobs permanently.
Trade unions and municipal officials have repeatedly requested greater flexibility from both Endesa and the Ministry of Ecological Transition to expedite the processing of the Environmental Impact Statement (EIS) required to launch new projects. Without this requirement, investment and job creation remain paralyzed.
Investments, aid and the situation of the Mudejar Nudo
The Aragon just transition zone has received significant announcements of public and private aid. The Ministry of Ecological Transition has approved more than 376 million euros in aid, supporting 120 projects aimed at the region and a total of 34 municipalities. In parallel, Endesa has committed a global investment of 1.800 billion euros for the construction of 1.843 MW of renewable power, which would mean more than 6.300 jobs in the construction phase and around 370 direct jobs later linked to the new renewable parks.
The deployment of these investments is pending administrative approval and the execution of complex energy projects. Mudejar Knot It represents the gateway for new renewable energy installations, but is still awaiting the final EIA. The implementation of these plans will be essential to ensure that recovering lost jobs does not remain an unfulfilled promise.
New challenges and future projects
One of the projects with the potential to transform the future of the region is the Catalina green hydrogen megaproject, which envisages an investment of more than €2.300 billion. Led by an international consortium, it seeks to connect the electrolyzers in Andorra to an ammonia plant in Sagunto via a dedicated pipeline. The facility is estimated to begin operating in 2027, although there are concerns regarding the project's high water consumption and its environmental impact in Aragon.
According to figures from the Renewable Foundation, the Catalina project could consume up to 10% of the entire community's annual water supply, requiring expansions in its second phase. Furthermore, it will require greater renewable generation capacity to comply with European clean energy regulations for hydrogen production.
The effective implementation of this megaproject and other transition plans will be decisive in reversing the decline in population and employment following the closure of the thermal power plant. The region continues to hope that the promises will be fulfilled and that new job opportunities linked to the energy transition will emerge.
