Chilean utility Endesa has approved the start of construction of the 32MW Palmucho hydroelectric project.

Construction of the US$32M project in Region VIII will use water flowing from the Ralco hydroelectric project. The civil works contract has been awarded to local firm Salfa Ingeniería y Construcción.

Endesa has started the process to certify Palmucho as a Clean Development Mechanism project under the Kyoto Protocol, enabling it to sell carbon credits to help finance the project.