Statkraft is planning to begin constructing its $204m Los Lagos hydropower plant in Chile, South America.

To start in August this year, construction is expected to complete in the second half of 2022.

Located on the Pilmaiquen River, downstream of Statkraft’s operational Rucatayo hydropower plant, Los Lagos hydropower plant will have an installed capacity of 51.6MW and an annual average generation capacity of 260GWh a year.

Statkraft International Power executive vice-president Jürgen Tzschoppe said: “Chile is an attractive market for Statkraft, with an increasing demand for renewable energy and several opportunities for developing both hydro, wind and solar. In line with our strategy, we are working to build scale in Chile.

“We want to capitalise on our combined expertise in power generation and market operations to best serve the market and provide energy to large industrial customers in the country.”

Civil works related to the project will be managed by a local consortium comprising construction companies Brotec, Valko and OBChile. Global technology company Voith has been selected to serve as electro and hydro-mechanical contractor for the hydro project.

Voith will also be responsible for the delivery of major components and construction services from its facilities in Brazil.

Statkraft acquired Chilean hydropower firm Eléctrica Pilmaiquén and the rights to build the Los Lagos Project in February 2015.

The project required a technical assessment and consultation process, which has been finalised.

Since 2014, Statkraft has a production capacity of 370MW with an annual production of 1,188GWh in Chile.

The company is also considering participating in future wind and solar opportunities.