The Chadín 2 Hydropower Plant was conceived to harness the Marañón River’s high hydroelectric potential and supply 600 MW of energy through a 175-meter dam. Although formally prioritized in the 2010s, concerns had emerged even earlier. Social conflict reports from 2012 and 2013 warned of potential protests due to environmental risks, the absence of prior consultation, and impacts on towns such as Cortegana, Chumuch, and Pizuquia. 

According to the Environmental Impact Assessment, the project could flood agricultural land, alter water quality, degrade habitats, and disrupt both terrestrial and aquatic ecosystems. Communities expressed fears of displacement, loss of livelihoods, and damage to archaeological sites. MINEM issued more than 160 observations to the EIA before approving it in 2014. However, corruption cases linked to the concessionaire, strong local opposition, and failure to meet construction deadlines halted the project. Today, the environmental certification has expired, leaving the project in indefinite suspension. The case highlights how evolving views on hydropower, cumulative river-basin impacts, and insufficient engagement with affected populations can undermine large-scale energy initiatives.

This case was developed by Sinfranova in collaboration with The Nature Conservancy Peru in 2022 and published in 2025. 

To read the full case in Spanish, click here: