Endesa Chile, the subsidiary of Italian energy group Enel in Latin America, has decided to give up water rights associated with five hydropower projects totalling 2,151 MW, considering that they are not technically or economically viable and that they may fail to be accepted by the local communities. In addition, current market conditions with declining prices are not inciting companies to develop new power projects.
The water rights were associated to five hydropower projects, namely 14 MW Bardón (Cautín River in the Araucanía Region), Chillán 1 and 2 (Chillán River, Biobío Region, 17 MW), Futaleufu (Futaleufu River, Los Lagos Regio, 1,330 MW), Puelo (Puelo River, Lakes Region, 750 MW) and Huechún (Metropolitan Region, 40 MW). Endesa Chile will take a US$52m writedown in 2016 related to the projects.
Endesa Chile will continue to work on its portfolio of optional projects to foster the development of those who are competitive and required by the country.
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