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Peru's energy and mines ministry has authorized generator Termochilca to develop the Santo Domingo de los Olleros thermo project.
The company requested the authorization in October, the official gazette reported.
The 196MW plant is planned for Chilca district in Cañete province, Lima region. Termochilca has 29 months to complete works.
Second and third phases - each for 200MW - are set to come online in 2013 and 2014, respectively, BNamericas reported previously.
Termochilca's plans also envision hydroelectric projects in Junín and Cajamarca regions.