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Statkraft welcomes dialogue with additional indigenous groups in Chile
"We are positive about engaging in dialogue with additional indigenous groups around our Los Lagos hydropower project in Chile. We have tried to establish dialogue with these groups for a long time. We have had a constructive dialogue and received important input from other indigenous groups and affected parties in the project area," says Ingeborg Dårflot, Executive Vice President International at Statkraft.
Norway's National Contact Point for Responsible Business Conduct has decided to facilitate mediation between Statkraft and certain indigenous groups from the Mapuche community in the Los Lagos region of Chile. The indigenous groups filed a complaint against Statkraft with the contact point for violations of the OECD Guidelines for Responsible Business Conduct in 2023. The contact point has decided to take parts of the complaint up for consideration and facilitate mediation on these points.
“We will enter this mediation in good faith and with a desire to find solutions. The run-of-river hydropower plant is almost completed, and in the process, we have had good dialogue with many of the local indigenous groups," says Dårflot.
When Statkraft purchased the project all necessary permits were in place. Nevertheless, Statkraft initiated an extensive dialogue process and has held more than 500 meetings with various groups in the communities affected by the Los Lagos development. Through this work, the company has tried to adapt the project to local needs and live up to its commitments to ensure high ethical standards and respect for human rights in all business activities.
Statkraft also had a concession for the development of another power plant on the same river, the Osorno project. After consultations with the local population and thorough assessments of the project's potential impacts, Statkraft decided not to go forward with this project. The concession has been returned to the authorities, and the area will be returned to the indigenous population.
"The stopping of the Osorno project shows that we take indigenous concerns seriously. In the Los Lagos project, we have assessed that it is possible to develop renewable energy and at the same time take necessary local considerations. However, it is the case that all renewable projects will have some impact on people and the environment. The world needs renewable energy, and this region in Chile needs access to stable hydropower to succeed in the energy transition. These needs must be balanced against each other, as the Chilean authorities have done by granting a concession for this project," says Dårflot.
About the Project:
Los Lagos is a run-of-river power plant with an installed capacity of 52 MW. The plant has been under construction since 2019 and is nearing completion. The power plant utilizes the river flow directly, without damming it up in a reservoir.
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