Environmental permits cancelled for HidroAysen project, Chile

10 June 2014


A ministerial committee in Chile has cancelled environmental permits for the HidroAysen hydroelectric project in the Patagonia region in a major blow for the proposed 2750MW scheme.

The committee ruled that the project had made insufficient provision for displaced people, and that the project's impact on the environment and wildlife was not adequately addressed. It overturned environmental permits for the dams that were originally granted in 2011 in a move welcomed by environmental protestors.

The developers of the project - the HidroAysen joint venture made up Endesa Chile and partner Colbun - will now have the opportunity to appeal the decision before an environmental court.

If it does go ahead, the $3.2B project would involve the construction of five plants on two rivers, two on the Baker river and three on the Pascua river, with annual average electricity production of 18,430GWh. All five schemes would require reservoirs to be built. The project was seen as key to satisfying the Chile's growing energy needs.



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