«Quitaracsa» Hydropower Project

The project Quitaracsa I is located in the central Andean region of Peru, 500 km to the north-east of the Lima city, at an altitude of 1,465 m. It takes the advantage of the natural flows of the Quitaracsa river which is a tributary of the Santa river and converges with this immediately downstream the location of the existent plant of Cañon del Pato (250 MW). The Project’s installed capacity and projected yearly average generation is 112 MW and 595.65 GWh, respectively. The expected load factor is 59.4%. The Project is expected to displace 324,034 tCO2e per year, which accounts for 2,268,235 tCO2e for the first crediting period (7 years), generating the equivalent amount of Certified Emission Reductions (CERs).

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
«Quitaracsa» project will displace GHG emitted by thermal power plants of the national grid using diesel, residual (bunker), coal and natural gas.
What would the future look like without the proposed CDM project?
The new additions in the future to the grid basically will be thermoelectric production with natural gas in combined cycle plants replacing most of the other plants with oil, of all types. National policies, sectoral policies and the new natural gas exploitation «Camisea» particular circumstance foster thermal technology against hydro-developments.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
According to the Consolidated Methodology ACM0002, the World Bank Carbon Finance business in a study done in December 2004 got a Baseline Emission Factor of 544 tCO2e/gwh. Using that emission factor it is expected that «Quitaracsa» project will displace around 324,034 tCO2e/year which otherwise will be emitted by thermal power with diesel, residual (bunker), coal and natural gas.

Current Status

Earliest project start date
The construction of the project it is planned to begin on the second semester of 2005. The operation is assumed to start in March 2008.
Estimate of time required before becoming operational
3 years
What is the project lifetime?
50 years
Current status or phase of the project eg: which of the following phases have been completed:
The Quitaracsa Power Station has the following authorisations and status
• Authorisation for the use of the water resources was given
• Environmental study approved
• Definitive Concession granted by Resolución Suprema Nº 023-2002-EM 12th July 2002.
• Contract with the Peruvian Estate for Definitive Concession for indefinite time
• Feasibility Study completed
• Financing negotiations are not closed
• The letter of approval was issued in January 2005 by the Designated National Authority on CDM.
• The project is under the validation process with a designated Operational Entity.

Estimated Emission Reductions

Annual: an average of 324,034 tCO2-equivalent.

• Up to and including 2012: 1,296,134 tCO2e
• Up to a period of 10 years: 3,240,346 tCO2e
• Up to a period of 7 years: 2,268,235 tCO2e
• Up to a period of 14 years: 4,536,470 tCO2e

Project Benefits

• The hydroelectric plant will use the water resources available from the Quitaracsa River, producing cheap energy with low environmental impact comparing with the electricity generated from thermal plants.
• Generation of Hidro-electricity would allow rural communities, improving their economic and production activities.
• The project would create new jobs, develop the surroundings and in general would contribute to the economic growth to a big portion of the country by supplying more energy thorough the interconnection of the project to the national grid.
• «Quitaracsa» fulfil the environment norms through the approval of its Environmental Impact Study by the Ministry of Energy and Mines. The local farmers approved the project and have been well informed about the scope of the project.

Project Participant and Financing

Total project cost estimate:
• Civil Works: US$ 39,500,000
• Machinery and equipment: US$ 28,400,000
• Transmission lines: US$ 7,500,000
• Other costs: US$ 25,600,000
• Total project costs: US$ 101,100,000

Sources of finance to be sought or already identified:
• Equity: 30% The project developer is looking for an investor
• Debt: 70%
• Carbon finance contribution sought: As much as we can have in advance.

Contact Information: