SNAPSHOT: Peru power projects under construction

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Thursday, May 18, 2017

Statistics from Peru's grid administrator COES reveal that installed capacity in April was 12,091MW versus maximum demand in the month of 6,450MW.

Some electricity producers argue that this "excess" capacity has lowered prices to the level that new investment is not justified.

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ALSO READ Peruvian generators sound oversupply alarm bell

A study from energy and mining investment regulator Osinergmin highlights, however that, according to the energy and mines ministry, this high margin would only cover the risk of the Camisea natural gas pipeline – which supplies thermoelectric plants – not being available.

[GRAFICO:FIGURA:ID_1262]

Peru energy demand forecast (SOURCE: COES)

Other risks include lack of rainfall, Mantaro – Peru's largest hydroelectric complex at 798MW – coming offline and transmission congestion or technical problems.

In this context, BNamericas takes a look at the principal generation and transmission projects under construction in the country, based on the latest information from the watchdog.

GENERATION

Six power plants for a combined 307MW and US$603mn are scheduled to enter service through August 2018.

These include hydros Renovandes H1 (20MW – pictured) and La Vírgen (84MW), both due online this year, and Marañón (18.4MW) and Yarucaya (15MW) in 2018.

On the thermo front, commercial operations startup of the 70MW Iquitos Nueva cold reserve plant is expected in the fourth quarter and the 100MW expansion at the Santo Domingo de los Olleros complex is due to fire up in July next year.

TRANSMISSION

Peru's dispatch grid will be reinforced with five projects that total approximately 2,000km and US$957mn.

This year, Mantaro‐Marcona‐Socabaya‐Montalvo (500kV, 918km), La Planicie‐Industriales (220kV, 16.6km) and Carhuaquero‐Cajamarca Norte‐Cáclic‐Moyobamba (220kV, 371km) are scheduled to come online.

In 2018, Azángaro‐Juliaca‐Puno is due to enter service, and Moyobamba‐Iquitos the following year.

Forecast load demand in Peru, by project (SOURCE: COES)