The Role of Stakeholder Engagement in Geothermal Exploration Practices in Tolhuaca, Chile

Abstract

Chile, one of the countries with the greatest geothermal potential lies in the south, is aiming up to 5.2 GW power generation from geothermal energy by 2030. Several geothermal exploration projects have been developed and social opposition was observed, especially among indigenous communities. Still stakeholder engagement and stakeholders’ response have not been studied deeply. Studying companies’ practices with stakeholders, help identify engagement approaches that lead to a positive social perception of the projects. The objective of our study was to describe the company´s practices of the Tolhuaca Volcano project, one of the most prominent projects in South America. The project was located in southern Chile and it was expected to install a 70 MW power plant by 2015. On the other hand, our paper focuses on describing the engagement practices and stakeholders’ perception to them through a qualitative approach. The testimonies of 26 stakeholders were collected through five focus groups and eight semi-structured interviews. Our case analysis shows the influence of stakeholder engagement practices on stakeholders’ perception of the project. Each component and respective outcomes of the engagement process followed by Geo Global Energy Chile and Mighty River Power were studied. The project developers had a proactive attitude in terms of stakeholder engagement. Some of the implemented measures had a positive impact in some stakeholders and others did not. We compared our results with existing regulations and standards for stakeholder engagement in Chile and best practices from an international literature review. Our findings suggest that similar perceptions may be expected in other places of southern Chile due to their similar contexts. Our study highlights the relevance of establishing engagement practices before the exploration drilling starts. Stakeholder engagement should be conducted in an appropriate way according to the local social context. Thus, social perception may ultimately be steered in a positive direction.