Chilean electric utility Colbun SA has announced the suspension of its Paposo pumped-storage hydropower project in the Antofagasta region, following the failure to revive the environmental assessment proceedings for the estimated USD 1.4 billion (EUR 1.25 billion) development.
The decision comes after the Environmental Assessment Service (SEA) of Antofagasta rejected Colbun's appeal against the resolution that halted the review of the project. In a statement last week, the company confirmed that it would explore next steps after the SEA's decision.
Colbun submitted the environmental impact study (EIS) for the Paposo project in June 2024, detailing plans for an 800-MW pumped-storage hydropower plant. The project aimed to create a two-reservoir system at a natural cliff along the Pacific coast, utilizing desalinated seawater to generate and store electricity.
However, in August, the Antofagasta SEA terminated the environmental assessment process, citing insufficient information in the EIS to adequately evaluate the project's impacts. The SEA noted that Colbun did not thoroughly investigate wildlife in the area and failed to provide details on two indigenous communities living near the proposed site.
Colbun exercised its right to appeal, requesting the SEA to reconsider its decision. While the SEA acknowledged some arguments from the appeal, it ultimately ruled against proceeding with the evaluation of the EIS.
The company expressed regret over the SEA's decision, asserting that the EIS included all necessary information for proper evaluation. Colbun contended that any information gaps could have been addressed during the evaluation process, as permitted by current legislation.
The SEA's rejection has sparked controversy, leading to calls for accountability. Following the appeal's outcome, media reports indicated that Ramon Guajardo Perines, regional director of the Antofagasta SEA, was asked to resign.
This development marks a significant setback for renewable energy initiatives in Chile, highlighting the challenges faced by energy companies in navigating environmental regulations.
