LIMA, Peru—Italian renewable energy developer Enel Green Power is making headway in the high-potential South American market, winning a handful of clean energy contracts that will help Peru diversify its electricity mix.
The three agreements include 326 megawatts of clean energy and are covered under 20-year power supply agreements with Peru’s state-owned energy regulator, OSINERGMIN. Enel plans to invest approximately US$400 to build 126 MW of wind, 180 MW of solar photovvoltaic, as well as 20 MW of hydroelectric capacity throughout Peru.
“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’s 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.”
A geographically diverse country with Pacific coastline, lush Amazon rainforest and some of the highest mountains in the western hemisphere, Peru houses significant potential for both wind and solar energy generation. According to the Global Energy Network Institute, strong year-round ocean breezes make the country’s northwest coast an excellent region for harnessing wind energy. Meanwhile mountainous areas in southern Peru close to the country’s border with Chile offer significant solar potential. Though the country has established a major hydroelectric network, new renewable power sources currently makes up just two per cent of its energy mix. With the latest Enel contracts, the country hopes to expand that figure to five per cent by 2018.
The three projects mark EGP’s first step into Peru, and Enel says the deals confirm the success of its growth strategy in Latin American.
A division of Italian utility company Enel, EGP has operations across Europe and the Americas. In Canada, the developer owns the 76 MW Castle Rock Ridge wind plant in Alta., as well as the 27 MW St. Lawrence project on Newfoundland’s southern coast.