Santiago, Chile — Energy company Colbún has officially withdrawn its Environmental Impact Assessment (EIA) for the El Encanto Photovoltaic, Storage and Energy Transport Park from Chile’s Environmental Assessment Service (SEA).
The proposed initiative was to be located in the municipality of Marchigüe, O’Higgins Region, and aimed to install 250 MW of solar power capacity and 260 MW of battery storage (4-hour duration), backed by a projected investment of US$500 million.
Colbún stated that the withdrawal is the result of “a thorough evaluation of several factors impacting the project’s feasibility at its current stage.”
Community and Municipal Opposition
One of the primary obstacles to the project was the firm and vocal opposition from local communities and the municipality of Marchigüe. On social media, Mayor Sebastián Flores expressed satisfaction with Colbún’s decision, stating:
“From the beginning, our municipal administration clearly and forcefully opposed this project due to its environmental impacts, the threat to traditional agriculture, and its disruption of our local productive culture,” Flores said. “Today we celebrate this significant victory alongside our community. Thank you to every neighbor who raised their voice to defend what we are.”
Regulatory Hurdles
Beyond the social resistance, the project also encountered substantial regulatory challenges. The first Consolidated Report for Clarifications, Rectifications, or Extensions (ICSARA) issued by SEA included over 300 observations from public institutions — even before input from the general public was considered.
Colbún’s Future in Renewable Energy
Despite the setback, Colbún reaffirmed its commitment to renewable energy in the region and beyond:
“We will continue evaluating opportunities in the O’Higgins Region and across Chile, as renewable generation and storage systems are key to ensuring a more sustainable and resilient energy supply,” the company noted.
The El Encanto project had sought to convert solar energy into electricity and inject it into the local distribution network — part of Chile’s broader efforts to expand its renewable energy matrix.