The Chaglla hydropower project is in central Peru in the department of Huánuco on the Huallaga river. The project developer is Empresa de Generación Huallaga S.A. (EGH).
The assessment was carried out using the Hydropower Sustainability Assessment Protocol. The Protocol assesses 20 topics and assigns scores for each between 1 and 5, with 5 representing Proven Best Practice and 3 representing Basic Good Practice.
Once commissioned, the Chaglla project will provide up to 456 MW to the national grid, making it the third largest hydroelectric power plant in Peru. It will generate approximately 6% of the country’s power and make a significant contribution to climate change mitigation, as it will displace natural gas (the default source of power in Peru), reducing annual greenhouse gas emissions by an estimated 1.8 million tCO2e. The project will not generate significant emissions from construction activities or from its small reservoir. It will boost regional socioeconomic development and help people adapt to future climate change, for example through technical assistance for cocoa and coffee production. It will also set precedents through its environmental management program, including one of the first aquatic biodiversity offsets in Latin America.
The project scores highly because its location was well selected and it was generally well designed, with a small social and environmental footprint, and because there is a high degree of corporate commitment to sustainability combines with the scrutiny of international lenders.