Endesa power plant project foiled in Chile

Spanish utility, Endesa (BMAD:à‚ ELE), has seen its plan to build a $1.4bn power plant in northern Chile halted by a court order in Santiago.

Fishermen near the proposed Punta Alcalde thermoelectric plant at Huasco succeeded in arguing that it would harm the environment and ruin their livelihood.
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The plant was set to supply the Atacama region’s copper mines, with current power generation insufficient to provide for the industry.

In a statement, Endesa defended the project as one of the most efficient in South America, and said the ruling does not definitively prevent construction of the plant.

Regional environmental authorities had halted the project last year, but were overruled by federal officials who said construction could proceed if some changes were made.

The matter is expected to eventually come before Chile’s Supreme Court.

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