Peruvian Government Announces 26 Winning Projects in Renewable Energy Auction

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Researched by Industrial Info Resources (Sugar Land, Texas)--On February 15, Peru's governmental mining and electric power investment authority announced the 26 winning projects of the first renewable energy auction held in Peru. The projects amount to a combined 887.24 gigawatt-hours (GWh) per year of power capacity, 426.76 GWh less than the maximum amount established for the auction.

The energy produced by these facilities, which are owned by 16 companies, will have guaranteed purchases of electricity for 20 years via the country's Interconnected National Electric System (SEIN) at a fixed price per megawatt/hour (MWh):

• $12 per MWh for biomass projects
• $11 per MWh for windfarms
• $269 per MWh for solar power plants
• $74 per MWh for hydropower plants

The contracts will be signed on March 31.

Of the 26 involved facilities, three mini-hydropower plants have been operational since 2009, while the remaining projects are committed to start delivering electricity to the SEIN before December 31, 2012.

The winning projects represent an installed capacity of 411megawatts (MW) and include two biomass-fired projects, three windfarms, four solar power plantsand 17 mini-hydro power plants. Only five of the 31 qualified projects announced for the auction on January 29 were dismissed. For additional information, see related February 2, 2010, news article - Peruvian Government Announces Companies in First Renewable Energy Auction.

The Peruvian electricity generation matrix has little diversification, with only two types of generation: hydropower plants and fossil-fuel combustion plants. In December 2009, 67% of the energy produced came from hydropower plants, while the remaining 33% came from gas turbines (17%), combined-cycle plants (11%), steam turbines (4%), and diesel internal combustion engines (1%).

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