The proposed micro-hydro generator, called Piruquina, would be built on the Carihueico River by Endesa's alternative energy investment unit.
It will have the capacity to generate 7.6 megawatts MW), Endesa says. The company's Endesa Eco unit has submitted an environmental plan to authorities to construct the micro-hydro plant in Chiloe Province.
Chiloe is located some 1,100 kilometres (684 miles) south of the capital Santiago.