«Central Graton» Hydropower Project

The proposed project is a small run-of-river hydropower plant located in Lima-Peru in the Rimac river basin in the San Mateo district. The purpose of the project is renewable electricity generation to be supplied to the National Interconnected Electric Grid (“SEIN”). The project’s installed capacity and projected yearly average generation is 5 MW and 36,000 MW-hours, respectively. The project is expected to displace 108,000 tons of carbon dioxide equivalent (“tCO2e”) in the first 6-year crediting period, generating an equivalent amount of certified emission reductions (“CERs”).

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
“Central Graton” project is a small CDM project that will displace from the national grid, some thermal power plants that use diesel, residual (bunker), carbon or natural gas as fuel, reducing in this way CO2 emissions.
What would the future look like without the proposed CDM project?
The new additions in the future to the grid basically will be thermoelectric plants with natural gas in combined cycle plants replacing most of the other plants with other plants with oils, of all types.
The project will assist the National Grid to keep thermal plants shut and use them only as stand-by power generation, therefore, displacing expensive heavy fuel, diesel, coal and gas fired generation and at the same time; reducing CO2 emissions to the atmosphere by generating energy without GHG emissions;
What would the estimated total greenhouse gas (GHG) reduction be with the project?
According to the most recent version of Appendix B to the simplified M&P for smallscale CDM project activities (“Appendix B”), the type and category of the project activity for The Project is: Type I: Renewable Energy Project . Category D: Renewable electricity generation for a grid. The World Bank Carbon Finance Business applied this methodology to Peru and got a baseline emission factor of 577 tCO2/GWh.
Therefore, the project of Central Graton will displace approximately 19,977 tnCO2 each/year, which otherwise will be emitted by thermal power plants of the national grid.

Current Status

Earliest project start date
January 2007
Estimate of time required before becoming operational
12 months. It is expected that the project will begin operation January 2007.
What is the project lifetime?
40 years
Current status or phase of the project eg: which of the following phases have been completed:
Central Graton HP has the following authorisations and status

• Authorisation for the use of the water resources
• Environmental study approved
• Definitive Concession granted by Resolución Suprema
• Contract with the Peruvian Estate for Definitive Concession for indefinite time
• Feasibility Study completed
• Financing negotiations: 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.
• It is expected to sign an ERPA during 2006.

Estimated Emission Reductions

Annual: an average of 19,977 tCO2e

• Up to and including 2012: 108,000 tCO2e
• Up to a period of 10 years: 180,000 tCO2e
• Up to a period of 7 years: 126,000 tCO2e
• Up to a period of 14 years: 252,000 tCO2e

Project Benefits

• Employing local labour in construction and plant management.
• Purifying/cleaning of the water for irrigation.
• Serving as a small demonstration project for clean renewable electricity generation in the country, functioning as an independent power producer (“IPP”).
• Helping the country improve the hydrocarbons trade balance through reduction of oil imports to be used for electricity generation.
• The project’s sponsor (“the sponsor”) agreed to perform a broad social development monitoring plan, which comprises socio-economic and environmental targets.

Project Participant and Financing

Total project cost estimate in US$: 5,751,000
• Equipment supplies: US$ 2,588,000
• Civil Works: US$ 2,166,000
• Installations and commissioning: US$ 497,000
• Development: US$ 500,000

Sources of finance to be sought or already identified:
• Equity US$ 2.75 million
• Debt: US$ 3.00 million
• Carbon finance contribution sought: none

Contact Information: