Chile and Frances GDF Suez have agreed to relocate a planned $1.1 billion thermal power plant, following a public outcry over fears the project would harm a reserve that is home to endangered penguins.
President Sebastian Pinera said a new location, which he did not disclose, was ideal to protect the pristine nature reserve in northern Chile.
«We have agreed with Suez to change the location of the Barrancones plant … so we can protect this wonderful reserve, not only for our generation but for future generations,» he said.
Suez said later in a statement that it would respect the decisions of Chilean authorities and «analyze whether better alternatives can be found to bring solutions to the growing energy needs of Chile.»
The government’s regional environmental commission in the Coquimbo region, Corema, had approved construction of the 540-megawatt Barrancones plant on Tuesday, triggering street protests in Santiago, the capital.
Surging energy demand in Chile is putting Mr. Pinera in a tough spot between economic needs and environmental protection. During his campaign, he vowed to oppose projects that threatened nature, communities or the quality of life.
While Mr. Pinera, who took office in March, is known as an environmentalist, analysts say he could choose to move ahead with key energy projects to satisfy the country’s energy needs.
A new location for the plant would likely delay the project, however, Suez did not comment on potential delays.
The nature reserve is home to endangered Humboldt penguins and small otters called «chungungos,» while whales and dolphins occupy the nearby marine habitat.
