Los Nihuiles hydroelectric complex faces concession controversy

The future of the Los Nihuiles hydroelectric complex in Mendoza, Argentina, is facing scrutiny amid a transition in its operational management. Following the expiration of the 30-year concession held by Hidroeléctrica Los Nihuiles S.A. (HINISA), a majority-owned by Pampa Energía, the province has taken possession of the assets and created Hidroeléctrica Mendocina S.A. (HEMSA) to oversee the system.

Controversy has emerged regarding the temporary operation of the complex. The provincial government contracted the Consorcio de Empresas Mendocinas para Potrerillos (CEMPPSA) to ensure continuity and security during the transition. However, political opposition has raised concerns about potential favoritism, suggesting the firm may have links to national government interests and could gain an unfair advantage in the upcoming long-term bidding process.

Investigations are also looking into whether a company linked to Grupo Neuss received early access to the facilities for maintenance tasks while the national and international bidding process is underway. Additionally, the complex is recovering from severe damage caused by a January 2025 flood that disabled the Nihuil II and III plants. The management of a multi-million dollar insurance policy related to these damages is expected to be a key factor in the final concession terms.