HidroAysén is a partnership between Endesa Chile (now Enel Generación Chile) and the Chilean company Colbún for the development of a hydroelectric project with a capacity of 2,750 MW. In 2014, the Chilean government revoked the project license after protests by environmental groups. In line with the strategy adopted, Enel declared at the beginning of 2015 that the project is not part of the project portfolio under development. In November 2017, Enel and Colbún officially ended operations and proceeded to close the partnership.
As part of the low-carbon strategy and the protection of human rights, in October 2017, Enel sold its 10% stake in the Indonesian coal producer PT Bayan Resources Tbk (“Bayan”), currently held through Enel’s fully- owned subsidiary Enel Investment Holding BV, to Bayan’s controlling shareholder Mr. Dato’ Low Tuck Kwong.
Western Sahara Project
In March 2016, a consortium of three companies – Enel Green Power, Siemens Wind Power and the Moroccan energy company Nareva – won a bid for the development, construction and operation of five wind farms with a total capacity of 850 MW. Three of the plants will be developed on Moroccan territory (Midelt, Tanger and Jbel Lahdid), the remaining two in Western Sahara, where the Tiskrad wind farm will be developed in Laâyoune, with a potential installed capacity of 300 MW, and the Boujdour wind power plant, in the province of the same name, with an installed potential capacity of about 100 MW. It is expected that all five plants will be built and completed in the period 2018-2021. Their construction will require a total investment of around 1 billion euro.
Currently, Enel Green Power and Nareva are finalizing the contract with ONEE (Office National de l’Électricité et de l’Eau potable) for the final recognition of the best offer. The construction of the first plant located in Midelt will begin during the second half of 2018. According to the updated tender schedule, the Boujdour wind farm will be the second project to be developed and construction should begin in 2019.
In preparing the tender described above, Enel conducted a preliminary analysis of the social, economic and environmental context (“SEECA”) with the help of external specialists in the areas where it planned to build the plants.
The SEECA identified the relevant socio- economic issues and specific needs of local communities which are, among others: infrastructure development, education development, health care, service development, poverty, social services, land ownership and the use and protection of cultural heritage.
In particular, an assessment of the environmental and social impact (Environmental Social Impact Assessment - ESIA) has been carried out, in line with the standards of the International Finance Corporation (IFC) and the guidelines of the European Investment Bank for the Midelt project and is underway for the Boujdour project, while it will be developed and subsequently implemented for the remaining projects.
A stakeholder consultation process was conducted in Midelt, Boujdour and Jbel Lahdid. A question and answer session was held at the end of every consultation. The process of analyzing the impacts and benefits of the project for local stakeholders will guide the definition and implementation of the Sustainability Plan for each project.
Enel Green Power operates in full compliance with laws applicable to the investment in question. Furthermore, the investment does not involve extractive activities, and the use of local renewable resources will support the social, economic and environmental development of the various areas involved.
Finally, the investment respects theprinciples adopted by the international community in relation to the protection of the environment and the reduction of emissions deriving from coal.
Enel Green Power plans to carry out a process to identify which areas require the development of possible actions starting from a socio-anthropological analysis of the territorial context and the definition of a specific Sustainability Plan for each project through the application of the sustainable construction site. Everything is developed and followed while taking into consideration activities that the Company carries out for the protection and respect of human rights in line with international standards such as the relevant due diligence process (for further details see the chapter “Getting to know Enel - Values and pillars of company ethics”).