South American utility Endesa Chile has announced it has rescinded water rights to six hydropower projects, costing the company US$52 million in money already invested.
The decision, made at a board meeting this week, was made after Endesa determined through initial social and environmental impact assessments that developing the projects would not be in its best interest.
"The will of Endesa Chile is to only carry out initiatives that are technically feasible, economical, and have the acceptance of the communities in which they are embedded," general manager Valter Moro said. "We have concluded that these are not viable, and for that reason, we are returning the water rights to the country so they can be used for other types of development."
Forfeited projects include the:
- 14-MW Bardon
- 17-MW Chillan 1 and 2
- 40-MW Huechun
- 1,330-MW Fualeufu
Endesa Chile also said that current low market conditions for power generated by the company contributed to low projects for their short- and medium-term revenue-making ability.
"Endesa Chile will continue to work on its portfolio of optional projects to foster the development of those who are competitive, required by the country, respect the environment and have the acceptance of the people in the territories they intend to settle," the company said in a statement.
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