Peru
Q&A

EDF Perú laying the groundwork to widen power grid footprint

Bnamericas
EDF Perú laying the groundwork to widen power grid footprint

EDF Perú, part of Électricité de France, is advancing plans to expand its participation in the South American country's growing renewable energies market.

The company supplies power to isolated jungle communities through Amazonas Energía Solar, a joint venture with Lima-based Novum Solar, and has issued a call for the engineering, procurement and construction of the US$384mn Araza run-of-the-river project.

BNamericas asked EDF Perú project manager Héctor Bonilla to shed light on the build-out.

BNamericas: With the bidding process already underway for the 195MW Araza hydroelectric project, when do you expect construction to begin and operations to start?

Bonilla: According to our development schedule, construction is expected to begin in the first quarter of 2027. Since there are three hydroelectric plants, they will be completed in 36, 40 and 45 months, that is, between January 2030 and November 2030.

BNamericas: Under what scheme will the plant's output be sold? Do you have a PPA, for example, and if so, could you comment on the offtake details?

Bonilla: As the project is in the final stage of development, we have had contact with some companies that are large energy consumers expressing interest in a PPA.

BNamericas: I understand that EDF is also developing the Chontayacu hydroelectric project, the Kuarachi solar project and the Pescadores wind project. What is the status of these?

Bonilla: In the case of the other projects in our portfolio, these are in the development stage at the level of engineering and electrical and environmental permits, among other phases.

BNamericas: We have seen that energy projects in Peru, especially hydroelectric projects, are increasingly under social and environmental scrutiny. What is the key to making progress on this front?

Bonilla: We in the EDF group adhere to international standards in socio-environmental matters, that is, we are respectful of the stakeholders in our area of influence and we actively seek to achieve social agreements with the communities where we interact and, from an environmental point of view, we comply with the IFC standards and performance norms.

BNamericas: Another recurring theme is the changes, or lack of, in the regulatory and legislative framework in the country. What changes are you expecting to see to move forward with the country's energy potential?

Bonilla: It is well known that we have a country rich in natural resources, including resources such as water, sun and wind. It is important that our authorities understand the importance of facilitating a regulatory framework that promotes technological competition. This is the only way that both the country and end users can have access to highly competitive and reliable energy prices.

On the other hand, laws must be adapted to realities, not only national but also global trends. Our law on electricity regulation has been without modifications for many years, so it is necessary to approve a regulatory change like the one that is currently in the hands of congress. It is the right time to be able to take that important leap towards the energy transition.

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