Peru’s Ministerio de Energia y Minas has granted a concession to Kallpa Generacion to perform a feasibility study of the 345-MW M3-Cerro El Aguila hydroelectric project in Huancavelica Department.
Peru’s Andina news service said the energy ministry granted the concession January 7, allowing Kallpa 12 months to perform studies of M3-Cerro El Aguila in Tayacaja Province, Huancavelica.
Kallpa Generacion, a Peruvian subsidiary of Inkia Energy, said in August it completed pre-feasibility studies and was drafting an environmental impact study of a 300-MW hydroelectric project to be developed in Peru. (HNN 8/19/08) At that time, Kallpa General Manager Javier Garcia Burgos did not disclose the project location because Kallpa was in the process of obtaining the concession.
Garcia told Andina January 7 that M3-Cerro El Aguila should begin operating in early 2014, for an investment of US$600 million. He said the feasibility studies, which should be ready within a year, would require an investment of US$2.5 million.
�We will conduct technical studies, of geology, and define the cost of construction of the project, principally of the tunnel and the dam that are the elements of major risk,� he said.
Although the cost of hydro project construction has been high over the last two years, Garcia said he expected some cost reductions in 2009 due to the economic crisis.
In performing the feasibility study, Kallpa is required to respect regulatory standards and security, preserving the environment and cultural resources. If the concessionaire fails to perform the study within the established guidelines and schedule, it will forfeit a guarantee to the ministry’s Direccion General de Electricidad.