Endesa Chile moves up power plant start date

By Monica Vargas

QUINTERO, Chile, Jan 23 (Reuters) - Endesa Chile, the nation's leading power generator, said on Wednesday it had moved up the start date for its combined-cycle power plant San Isidro II because of the current energy shortfall.

Endesa Chile (END.SN) (EOC.N), a regional generating affiliate of Endesa Spain (ELE.MC), originally planned to begin operating in March, but began injecting electricity on Monday into the central power grid (SIC), which serves the country's populous central region.

"It was moved up because it's better to face the winter with more power instead of less," Rafael Mateo, Endesa Chile's chief executive said at a ceremony given by the energy ministry at a liquid natural gas (LNG) terminal that is under construction on the Quintero Bay in central Chile.

The project, scheduled for completion in 2009, is part of a government plan to become more energy independent after severe cuts in natural gas from Argentina and lower hydroelectric reservoir levels due to scant rainfall caused electricity prices to skyrocket.

The San Isidro II power plant, involving an investment of more than $220 million, is currently operating with diesel fuel, but will use natural gas once the LNG terminal is ready.

The energy shortage has also been blamed for slowing Chile's economic growth and President Michelle Bachelet said projects such as the LNG plant would strengthen Chile's economy and help it confront global economic volatility.

"We're working day by day to take better advantage of our resources to take advantage of our capabilities for stronger growth," Bachelet said at the ceremony. "We'll probably see some consequences (of global volatility), but Chile will be better positioned to confront this situation." (Reporting by Monica Vargas; Writing by Lisa Yulkowski; Editing by Maureen Bavdek)