The 155MW La Higuera run of river project has been successfully registered with the Clean Development Mechanism (CDM) Executive Board.
La Higuera is the first hydro power project in Chile and the largest in the world to be registered under the CDM, United Nations Framework Convention on Climate Change (UNFCCC) framework.
The project received approval following a process of international scrutiny and is approved for the creation of carbon credits (Certified Emission Reductions or CERs) when it becomes operational in 2008.
La Higuera is a 50/50 joint venture between SN Power of Norway and Pacific Hydro of Australia. It is fed by seasonal rainfall and glacier melt from the Tinguiririca river.
Once operational, La Higuera will contribute reductions in greenhouse gas emissions of more than 470,000 tonnes per year.
In January 2005 the project received Host Country approval from the Chilean government, based on the project clearly satisfying and complying with all development and environmental goals set by the government for sustainable development. In December 2005 the report was validated and the project was registered as a CDM project in March 2006.
The construction of the La Higuera hydro power project will also significantly contribute to helping Chile meet a pending shortfall in energy capacity, which is the result of restrictions of natural gas supplies from Argentina.