HidroAysen Dam Project - Patagonia

In 2005, the HidroAysen Dam Project was proposed as a joint venture by Spanish energy corporation Endesa, S.A. and Chilean electric utility firm Colbún S.A. The plan calls for the construction of five hydroelectric dams in Chile’s southern Patagonia region, with three dams intended to be built on the Pascua River and two on the Baker River. In addition to the five dams, the proposal calls for construction of 1,500 miles of high tension transmission lines through Patagonia’s ecologically sensitive forests and roadless terrain. At an estimated cost of cost of $3.2 billion, the stakes are high for investors, contractors, and energy utilities, and these groups have redoubled their public relations efforts to persuade the Chilean government and public in the face of objection

Since the project’s inception, international environmental and consumer groups as well as Chilean citizens and some government officials have led a raucous protest against HidroAysen, attacking the proposal on several fronts. International Rivers, an international nonprofit that partners with governments and NGOs with the goal of protecting ecologically important rivers and basins, has spearheaded the campaign. Their research has highlighted the gross environmental damage that would be caused if the dams are constructed, including the flooding of one of a kind tracts of rainforest and Chile’s most viable and productive agricultural land in the southern region. The campaign also highlights the abundance of environment-based alternative energy sources in the region, including the potential for solar and wind power production out of the Atacama Desert.

There are also complaints coming from consumer groups inside of Chile and abroad, saying that the project simply pads the pockets of huge energy multi-nationals while monopolizing energy production and distribution in Chile. Many claim that Chileans will be deprived of the energy plan’s benefits, as much of the power will be transmitted to the populous northern cities and mining industries resulting in higher costs for southern Chileans working in more traditional economies. Even corporations in the United States are feeling a consumer backlash, as evidenced by calls for Home Depot to boycott timber purchases resulting from forest loss as a result of the dam’s construction.

The HidroAysen group has been dealt a setback however, as the decision to be made on the environmental impact review has been delayed until April 2011, for the dams only. The environmental impact review for the construction of the transmission lines has not yet begun by HidroAysen.