Italian renewables developer Enel Green Power SpA is making its first foray into the Peruvian hydroelectric power market through a multi-faceted, 20-year energy supply contract with the country’s government.
The deal will see EGP subsidiary Enel Green Power Peru invest about US$400 million into a trio of renewable energy plants, which include the 20-MW Ayanunga hydropower project, and 180 MW solar and 126 MW wind components.
The small hydropower project will be located in Peru’s central Huanunco Department and is expected to be in operation by 2018.
Enel Green Power won the supply tender through the Organismo Supervisor de la Inversion en Energia y Mineria (OSINERGMIN). The energy and mining investments agency sought proposals in September for plants that would increase Peru’s small hydropower output by 450 GHw per year, reflecting the country’s efforts to increase its share of renewables up to 5% from the current 2% by 2018.
“These results also illustrate how renewable energy can be competitive with traditional generation even in geographies where its development is still in the early stages,” EGP CEO Francesco Venturini said. “Renewables provide diversification in a country’s energy mix, making the energy system more resilient and better focused on addressing the challenges posed by climate change.”
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