PERÚ - Observatory for Renewable Energy in Latin America and

Perú- Products I and II
insufficient to promote the investment in a new generation offer to cover the demand
growtht. Besides, on the spot market, there were marginal costs constantly higher than
prices fixed by the Regulator, discouraging generators to invest for increasing the
generation capacity and sign contracts with distribution companies.
To get over this situation, it was enacted the Law Nº 28832, designed to reduce the
intervention of the regulating body in the fixation of generation tariffs. It establishes the
mechanism of long-term tenders for the electricity supply to the regulated market with
resulting prices of that tenders. The supply contracts that the generators obtain could be
up to 20 years. In this law are established especial incentives for the hydroelectric
projects in order to make them competitive in front of the thermoelectric projects of
natural gas. With the same purpose, the Ministry of Energy and Mines has the faculty
of commissioning PROINVERSION the leading of long-term tenders for the electricity
supply, exclusively for hydroelectric projects.
In May of 2008, it was enacted the L.D Nº 1002, which encourage investments in
renewable technologies and the diversification of the electricity supply, establishing
economical incentives and the auctions mechanism to sell contracts of energy supply
for 20 years with the same guaranteed price to the sold proposal.
To date, the private sector in Peru is forging important thermoelectric, hydroelectric
and other renewable energies generation projects. There are included 6 hydroelectric
projects with a total capacity of 1 282 MW, which are going to get into commercial
transaction between 2013 and 2016. There are also included 18 projects of little
Hydroelectric Power Stations with a total installed capacity of 180 MW, 3 aeolian
projects of 142 MW, 4 photovoltaic solar projects of 80 MW and 2 biomass projects of
27 MW, all of which will be on commercial transection by the end of December of
2012. Additionally, it is in process the second auction of renewable energies, which
would result in commitments of investment for the implementation of nearly 480
additional MW, between small hydro, biomass, eolian and photovoltaic solar projects,
which have to get into commercial transaction before January 31 of 2015. All those
short and medium term projects add up a total of 2 191 MW, and constitute the result of
the new legal framework as an investment promoter of new supplies of conventional
and renewable energy generation, as it is detailed on the present report.
(OSINERGMIN, 2011a).
With the interest of sharing the gained experience regarding the development of
renewable technologies, it was proceeded to formulate a criteria to identify two study
cases which could represent the art status in Peru. Thereby, from a previous selection of
4 projects, there were selected for its development only two: The “Santa Cruz II” HPS
and the Cogeneration Station “Paramonga I”.
The “Santa Cruz II” Hydroelectric Power Station is located 2 104, 5 m.a.s.l. in the
northwest of Lima. It is part of the “Rio Blanco” basin (Santa Cruz) in the district of
Santa Cruz (Huaylas Province in the Ancash Department of Peru). It is a run-of-the
river hydroelectric station of 6 MW. The investment in the project rise to 10, 2 million
dollars approximately and got into in commercial transaction in June of 2010, with an
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