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The project entails installation of two 20.2MW turbines downriver from the Santa Teresa plant, according to environmental documents filed with the energy and mines ministry (MEM).
Estimated investment for the 43-month project is US$105mn. Electricity would supply the national SEIN grid via the Suriray substation.
Luz del Sur also holds a temporary concession for 268MW Santa Teresa II, which has sparked local opposition.
Community leaders in Cusco province La Convención recently ended protests after reaching an agreement with the central government.
MEM along with the environment ministry, regional authorities, defense group Frente de Defensa de Quillabamba and others have formed workgroups to resolve energy issues in La Convención.
One workgroup will address Santa Teresa II and another group will focus on the construction of an LPG plant in Kepashiato, Camisea blocks 56 and 88, and natural gas pipeline Sur Peruano, MEM said in a statement.
BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.