Chile: Quilleco Hydroelectric Project

Audit Analysis

The Quilleco Hydroelectric Project is a CDM small-scale hydro project with a confirmed additionality test and inherent permanence advantages, but its credibility is undermined by nine material findings in the monitoring report, unresolved contradictions in baseline methodology and leakage treatment across documents, and the absence of a verified ERR figure for the reporting period. The project delivered roughly 62% of the pro-rata ex-ante expectation for the elapsed monitoring window, which is conservative but reflects weak monitoring rigor.

Project Description

Red Flags

• ⚠Nine material findings in the 2021 monitoring report, including missing annual CERs estimates, weak generation cross-checks, and unclear baseline revalidation steps, yet no corrective actions were required
• ⚠Baseline method is stated as 'jurisdictional' in the PDD (2022) but 'project' in the 2021 monitoring report — an unresolved contradiction that affects the validity of the emission-factor basis
• ⚠No verified ERR figure is available for the 2016–2018 monitoring period; only the PDD's lifetime ex-ante estimate (2,078,174 tCO₂e) is on record
• ⚠Grid emission factor of 0.70351 tCO₂/MWh is dated 2013 and may not reflect current Chilean grid conditions
• ⚠Monitoring period (2016–2018) covers only about 43% of the seven-year crediting period (2015–2022), leaving a large unmonitored window

Credit Vintages