Plans for the 2750MW HidroAysen project in Chile's Patagonia region need to be restructured or reformulated if the project is to go ahead, Enel CEO Francesco Starace told reporters this week.
According to reports from Reuters, Starace said the project - being developed by Endesa Chile (majority owned by Enel) and partner Colbun - would need to address environmental and regulatory concerns if it is to move forward, following the recent cancellations of environmental permits for the major scheme.
The CEO said there were a number of options facing the developers, including reformulating, restructuring, or quitting the project entirely. Starace was reported as saying it was clear the project could not go ahead as is.
Original plans for the $3.2B project 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.
With the cancellation of the permits by a ministerial committee in Chile in Early June, the developers now have the option to amend project plans, or launch an appeal using the original design. Starace's comments appear to rule out the latter option.