Baseline Scenario
Which emissions are the proposed Clean Development Mechanism CDM project displacing?
«La Virgen» project is regular size CDM project and will displace GHG emitted by thermal power plants using diesel, residual (bunker), carbon and natural gas as fuel from the national grid.
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 «La Virgen» project will displace around 209,440 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 is planned to begin on January 2006. The operation is assumed to start in 2008.
Estimate of time required before becoming operational
2 year and a half
What is the project lifetime?
30 years
Current status or phase of the project eg: which of the following phases have been completed:
• The feasibility study is available
• The environmental and archaeological impact studies has been already approved by the Ministry of Energy and Mining, and by the National Institute of Culture, respectively.
• The concession for the water use was given by General Administrative Procedure N° 044-201-DRA/J-ATDRP from the Ministry of Agriculture in may 22, 2001.
• Energy concession is in process
• Financing negotiations are not closed
• The letter of approval from the Designated National Authority on CDM is in process.
Estimated Emission Reductions
Annual: an average of 209,440 tCO2-equivalent.
• Up to and including 2012: 1,047,200 tCO2e
• Up to a period of 10 years: 2,094,400 tCO2e
• Up to a period of 7 years: 1,466,080 tCO2e
• Up to a period of 14 years: 2,932,160 tCO2e
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Project Benefits
• The hydroelectric plant will use the water resources available from the Yanango hydro power plant, producing cheap energy with low environmental impact comparing with the electricity generated from thermal plants.
• Generation of Hydro-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 through the interconnection of the project to the national grid.
• «La Virgen» 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$ 21,360,816
• Machinery and equipment: US$ 26,347,976
• Engineering and Administration: US$ 3,504,115
• Total project costs: US$ 50,744,926
• Taxes (IGV + Import Duties): US$ 12,917,045
Sources of finance to be sought or already identified:
• Equity: 10 TO 15%
• Debt: 90 TO 85%
• Carbon finance contribution sought: As much as we can have in advance.
Contact Information:
| Developer: |
Peruana de Energía S.A. (PERENE) |
| CDM promoter: |
National Environmental Fund (FONAM) |
| Name: |
Julia Justo, Claudia Monsalve, Tania Zamora |
| Phone/Fax Numbers: |
(51-1) 449-6200 |
| E-mail: |
jjusto@fonamperu.org / cmonsalve@fonamperu.org
tzamora@fonamperu.org / fonam@fonamperu.org |
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