Baseline Scenario
Which emissions are the proposed Clean Development Mechanism CDM project displacing?
«San Gaban I» project is a CDM project and will displace GHG emitted by thermal power plants using diesel, residual (bunker), coal 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 plants with natural gas in combined cycle plants replacing most of the other plants with oil, of all types . The project will displace energy from thermal plants of the grid.
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 «San Gaban I» project will displace around 507,008 tCO2e/year which otherwise will be emitted by thermal power plants.
Current Status
Earliest project start date
The construction of the project is planned to begin in the third quarter of 2005. The operation is assumed to start in mid 2008.
Estimate of time required before becoming operational
3 years
What is the project lifetime?
30 years
Current status or phase of the project eg: which of the following phases have been completed:
• Feasibility study finished (available)
• The environmental and archaeological impact studies have been duly approved by the Ministry of Energy and Mines.
• The concession for the water use was given by General Administrative Procedure N° 211-DRAP-ATDRR/AT from the Ministry of Agriculture on October 29, 2003.
• A permanent and definite Energy Concession was approved under Supreme Resolution No. 004-2004-EM on February 03, 2004.
• Financing negotiations are not closed. PPA and EPC under negotiations.
• Engineering studies was made by Lahmeyer Engineering
• The letter of approval by the Designated National Authority on CDM is in process.
Estimated Emission Reductions
Annual: an average of 507,008 tCO2e
• Up to and including 2012: 2,028,032 tCO2e
• Up to a period of 10 years: 5,070,080 tCO2e
• Up to a period of 7 years: 3,549,056 tCO2e
• Up to a period of 14 years: 7,098,112 tCO2e
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Project Benefits
• The hydroelectric plant will use the water resources available from the San Gaban River, producing cheap energy with low environmental impact comparing with the electricity generated from thermal plants.
• Generation of Hydro-electricity would allow displacing or shutting down a carbon power thermal plant and also 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.
• «San Gaban I» fulfils the environment norms according to its Environmental Impact Study. This study was approved by the Ministry of Energy and Mines on February 13, 2003 under Directorial Resolution No. 084-2003-EM-DGAA.
Project Participant and Financing
Total project cost estimate:
• Civil Works: US$ 68,405,000
• Machinery and equipment: US$ 30,920,000
• Transmission lines: US$ 34,975,000
• Other costs: US$ 4,000,000
• Total project costs: US$ 138,300,000
Sources of finance to be sought or already identified:
• Equity: 30 TO 35 %. Additional equity participation is in negotiations with an interested European investor.
• Debt: 70 TO 65 %
• Carbon finance contribution sought: As much as we can have in advance.
Contact Information:
| Developer: |
Empresa de Generación Macusani S.A. |
| 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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