Peru grants geothermal exploration permit

Peru’s energy and mines ministry granted Oxenergy an authorization to explore for geothermal resources in the southern region of Tacna.

The project will target the Calientes area in the district and province of Candarave, ministry information shows.

Oxenergy requested approval in November and now has 24 months to conduct work in a first phase and 12 months in a second phase, the latter following environmental approval.

Exploration will be carried out across 900ha to locate a geothermal reservoir and estimate the potential for power generation.

Prior to the authorization, the natural protected areas service (SERNANP) and the ministry’s social management office greenlighted the project.

Despite Peru’s geothermal potential of nearly 3GW, the energy source has yet to take a hold, with the last exploration authorizations issued in 2013.

The high upfront cost of exploratory drilling to prove the resource, and a six-to-seven-year construction period, coupled with Peru’s surplus generation capacity, and solar and wind projects in the pipeline, among other factors, have curbed geothermal build-out.

Read Is geothermal power losing steam in Peru?