Enel’s Strategic Plan 2017-2019 is increasingly focused on growth in renewables, thus abandoning investments in coal plants and the construction of large infrastructure projects with a high environmental impact. This strategy enables the Group to enjoy greater flexibility and a reduction in risks besides the minimization of impacts on the ecosystem and local area.
Every infrastructure project faces evaluation by the communities affected; in some cases, there are criticisms or the project does not have full support. Sometimes, despite the broad consensus of the local communities and institutions, there is opposition from some civil society movements or environmental associations. The involvement of the parties concerned in the planning processes and in the development of infrastructure is an essential element. In some cases the construction of new plant may entail the relocation of part of the resident population to nearby areas. Managing relocation inevitably involves the populations or individuals affected and a careful assessment of the psychological and social problems that can be expected at both individual and group level. The approach to choosing potential sites is that of minimizing, as far as possible, the need to relocate the population. When establishing the potential sites for the development of energy projects, studies are conducted which include economic, political, cultural, social and demographic aspects, including analysis of the daily life of the communities who live in the area affected, the population distribution, the forms of organization, and the levels of employment and pay. In the cases in which the relocation option is confirmed, the project is developed in compliance with the legislation in force in the country concerned, as well as with any local laws which specify the conditions for the relocation and the means for calculating the related compensation. Enel’s sensitivity to this issue is also clear in the human rights policy approved in 2013 by the Board of Directors. Below are details on the most important current projects, the positive and/or negative (real or ‘feared’) impacts on the local area and how the Group companies involved are promoting proactive dialogue to arrive at shared solutions, relating to plants built in the past which have residual problems.
Other significant facts
Neltume is a project relating to a hydroelectric run-of-the river plant, with installed power of 490 MW, in the Municipality of Panguipulli, in the Region of Los Ríos. The environmental assessment process started in 2010 and is still ongoing. In 2006 Endesa Chile (now Enel Generación Chile) started a consultation process with the indigenous communities in order to incorporate their requests into the development of the project. In particular, since 2007 there have been information offices in the towns close to the project area and in 2011 some contact points were opened with the Casas Abiertas communities to facilitate their participation. Currently in Neltume there is a company information office which handles relations with civil society organizations and the local authorities to reach specific agreements. On April 29, 2013 the Environmental Assessment Service (SEA) of the Region of Los Ríos issued “Resolución Exenta n. 002” which envisages as part of the environmental assessment of the project the realization of an indigenous consultation process, in accordance with the provisions of “Convenio OIT n. 169”, with the communities, populations and groups in the area affected by the plant. The SEA met each of the eight communities identified to set out in detail the consultation process, inviting them to nominate their representatives.
In December 2015, after the conversations with the communities, the environmental impact assessment associated with the project was withdrawn since the impact generated according to the design of the project was not sustainable. In May 2016, Endesa Chile (now Enel Generación Chile) communicated that it would start assessment of design alternatives, which are currently underway. At the same time, Enel Generación Chile is working to provide sustainability and self-sufficiency to the local development initiatives undertaken in recent years. Among these is the creation of the Fiera Lelilen Lafken, which is a space for the sale and promotion of various crafts products and Mapuche food and drink built with the active support of the beneficiaries themselves on the shores of Lake Neltume and visited by over 400 thousand tourists annually.
The beneficiaries of this project are around 50 wood and wool artisans. The organization and the management of this space is collective and is delegated to an executive committee consisting of members of the community.
THERMOELECTRIC PLANT OF PORTO TOLLE (ITALY)
In August 2011 the Public Prosecutor’s Office of Rovigo indicted some directors, former directors, executives, former executives and employees of Enel and Enel Produzione for the crime of willful omission of measures to prevent disasters, relating to alleged emissions from the Porto Tolle plant; subsequently, the public prosecutor added the alleged crime of willful disaster. During 2012 the Preliminary Hearing Judge of Rovigo, following the requests from the Public Prosecutor’s Office of Rovigo, ordered the indictment of all those under investigation for both crimes. After various levels of judgment, on January 18, 2017 the Court of Appeal of Venice absolved all the accused on the grounds that there was no case to answer. For further details see the Enel Annual Report 2016 – Potential Assets and Liabilities.
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 withdrew the license for the project after the protests of environmental groups. Enel wishes to develop only projects that create shared value for the company and for its stakeholders and therefore at the start of 2015 it stated that the project was not part of the portfolio of projects at the development stage. Currently negotiations are underway with the partner Colbún to find the best possible solution for the communities and the companies.
HYDROELECTRIC PROJECTS (CHILE AND PERU)
Enel has decided to waive hydroelectric use rights for some projects in Latin America following the analysis of their profitability and their socio-economic impact. The projects are the following: Puelo, Futaleufú, Bardón, Chillán 1 and 2, and Huechún in Chile (capital loss of 166 million euro) and Curibamba and Marañón in Peru (capital loss of 30 million euro). The waiver is in line with the strategy of the Enel Group which intends to develop only projects which are not only technically and economically feasible, but also shared with the local communities. The rights for water use, for which the waiver was expressed, were returned to the States to be used for any other type of development project.
|Access to energy||3 million beneciaries, mainly in Africa, Asia and Latin America by 2020|
|Social and economic development||1.5 million beneciaries* by 2020|
|Quality education||0.4 million beneciaries by 2020|
|Implementation of new projects for the support of the communities in which Enel operates in order to create shared value and to foster the energy culture|
|Diffusion of the Creating Shared Value (CSV) model in the operational activities (Business Development – BD, Engineering & Construction – E&C, Operation & Maintenance – O&M)|
|Strengthening of strategic partnership and promotion of operational partnership|
* Target updated compared to 500 thousand initial beneficiaries.