Engie builds up Peru renewable energy portfolio

Engie Energia Perú (EEP) is now is looking at the possible development of a second solar complex in southern Peru after bringing online its first non-conventional renewable energy (NCRE) plant last year.

After starting up the 40.5MW Intipampa solar park (pictured) in the southern region of Moquegua at end-March last year, the company has secured a temporary concession from the energy and mines ministry for the 300MW Hanaqpampa project and has 24 months to carry out feasibility studies in the El Algarrobal district. The concession request was submitted in June.

EPP's NCRE pipeline includes the Punta Lomitas wind farm for up to 260MW, while the bulk of the generator’s installed capacity comes from thermo (2,208MW) and hydro (248MW) plants – see infograph below.

Ratings agency Apoyo & Asociados highlights that the company’s generation mix allows it to inject electricity production year-round, as dispatch is based on marginal cost, therefore prioritizing hydro and NCRE, followed by natural gas, coal and diesel.

Information from grid coordinator COES shows that EPP was the country’s third largest power producer in July with 602GWh, behind Kallpa (759GWh) and Electroperú (630GWh).

At end-June, EPP’s free clients totaled 72, up 9% year-on-year, which represented 47.7% of total revenue in the first half, with the bulk of offtake from the mining sector. The balance of revenue came from 12 power distributors.

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In related news, the ministry granted a temporary concession to Compañía Minera Zafranal for the 96.3km, 220kV Yarabamba-Zafranal transmission line, which would be built in the southern region of Arequipa. The miner has 24 months to carry out feasibility studies.