Projects for Luz del Sur unit reach US$1.6bn

Monday, October 2, 2017

Environmental permitting has begun for a hydroelectric project in southern Peru's Arequipa department that would cost approximately US$700mn and increase the country's generation park by over 400MW.

Information from the environmental certification service for sustainable investments, Senace, shows that Luz del Sur-controlled Inland Energy submitted a preliminary environmental evaluation (EVAP) for the Majes I (293MW, US$422mn) and II (156MW, US$274mn) complex.

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Inland took over development of Majes, as well as the hydro projects Garibaldi (US$300mn, 202MW and Santa Teresa II (280MW, US$600mn), from Luz as part of the latter's recent reorganization.

Construction of Majes I and II would take 52 and 48 months, respectively, and components include a penstock, water supply tunnels, force piping and a machine house. Power would be injected into the national grid via a 44km 500kV line.

An EVAP is used to determine whether an environmental impact assessment, semi-detailed environmental impact study, or detailed environmental impact study is required.

Also from Peru, the energy and mines ministry granted Engie Energía Perú rights of way to carry out feasibility studies for wind projects Pampa Lomitas and Punta Lomitas Norte, each of which would boast 150MW.

The government published a supreme decree that establishes the effective start date for the wholesale power market regulation.

And energy and mining investment regulator Osinergmin published a resolution that establishes the procedure for the refund of money billed to users of electricity, hydrocarbons and natural gas service to help finance the Sur Peruano natural gas pipeline.