Statkraft has announced that construction of the 52MW Los Lagos hydropower plant in Chile is expected to commence in August, with completion scheduled for the second half of 2022.

Los Lagos will be located on the Pilmaiquen River, downstream of Statkraft’s operational Rucatayo hydropower plant. The project is estimated to cost approximately US$200 million. The contract for civil works has been awarded to a local consortium of Brotec, Valko and OBChile. The electro and hydromechanical equipment will be delivered by Voith, who will supply the major components and construction services from their facilities in Brazil.

“Chile is an attractive market for Statkraft, with an increasing demand for renewable energy and several opportunities for developing both hydro, wind and solar,” said EVP for International Power, Jürgen Tzschoppe. “In line with our strategy, we are working to build scale in Chile. We want to capitalise on our combined expertise in power generation and market operations to best serve the market and provide energy to large industrial customers in the country.”

In February 2015, Statkraft acquired Eléctrica Pilmaiquén S.A. Company, including the rights to develop the Los Lagos Project. Technical assessments and a comprehensive consultation process have been finalised in accordance with Statkraft standards and in line with international best practices. Stakeholder engagement with indigenous communities and other local stakeholders will continue with the aim of establishing a long-term relationship.

Statkraft has been present in Chile since 2014 and today the company owns a production capacity of 370MW with an annual production of 1188 GWh. To further strengthen its position in Chile, the company is also assessing wind and solar opportunities and evaluating possibilities for bidding in future renewable energy auctions.