La Higuera Hydro Project

In January 2002, Pacific Hydro signed an agreement to create clean, efficient energy high in the hills of Chile from the waters of the Tinguiririca River. Like our Coya and Pangal, also in Chile, La Higuera will be doing its part in helping cut the creation of greenhouse gases and giving local communities and businesses a reliable source of green energy. The project is a 50:50 joint venture with Norwegian company SN Power Invest (SNPI).

How it works

Our target is to generate 1,381GWh/yr of clean, renewable energy each year through a two-stage split scheme. Construction commenced on the 155MW La Higuera hydro project in October 2005, and in October 2007, the 158MW La Confluencia, upstream to generate the remainder of the energy.

La Higuera will be a run-of-river hydro power station, meaning the natural flow of the river will be used to create the renewable energy, and the local geography won't be changed dramatically by the operation of the power station.

The Tinguiririca river itself is fed by a glacier deep in the snow-capped mountains, snow melt and rainfall, making it a reliable source of water, all year round. Its flow is captured for use just upstream from where it joins with its major tributary, Azufre.

On its journey to the power plant, the water is fed through short canals, specifically designed to minimise their environmental, social and visual impact. From there, it travels through desander bays, and 18 km of tunnels to a surge shaft and surface penstock to the powerhouse.

The powerhouse features two generating units equipped with vertical Francis turbines, and the electricity produced travels along 38 kilometres of transmission line to connect into the Central Grid at San Fernando.

Construction is being overseen by a leading Brazilian construction firm, Queiroz Galvao, and financing for La Higuera has been provided through an International Finance Corporation (IFC) Syndicated Project Loan of US$160 million.

Delivering the Benefits

Once fully operational, La Higuera and La Confluencia will save 700,500 tonnes of greenhouse gases from entering the atmosphere every year. The social benefits of the project are also significant, with around 800 people to be employed over the construction period in a zone of high unemployment and poor infrastructure.

La Higuera and La Confluencia are also set to play a significant role in the valuable carbon trading market. La Higuera recently received registration under the Kyoto Protocol's Clean Development Mechanism (CDM), and in doing so became the largest hydro project, and the first in Chile, to be registered.  La Confluencia is in progress. We are currently working, in conjunction with our joint venture partner to secure long term deals for the sale of Certified Emission Reductions (CERs) from both these projects.