Peru developer Electricidad Andina S.A. and London-based Trading Emissions plc have agreed to develop the 225-MW Santa Rita hydroelectric project on Santa River in Peru’s Ancash Department.
In an agreement signed October 11, Trading Emissions pledged to invest US$3.5 million in the US$232 million project with the goal of bring the project to financial close by March 2007. Trading Emissions also agreed to invest an additional US$12.5 million.
Peru’s Ministerio de Energia y Minas (MEM) said Andina has initiated negotiations with the Inter-American Development Bank to obtain additional funding to assure the March 2007 closing. The developer is to manage the project and supervise the total investment for Santa Rita, which is to go on line by late 2009.
MEM said participation by Trading Emissions secures the backing of one of the largest funds in the world — US$50 million — that is dedicated to promoting clean energy and reduction of carbon dioxide emissions. The companies plan to use the United Nations’ Clean Development Mechanism to create carbon emissions credits that can be traded under terms of the Kyoto Protocol to reduce greenhouse gases.