Callahuanca Hydroelectric Refurbishment Project

Electricity generated by Callahuanca Plant is dispatched to the Peruvian electricity grid. Currently the plant has a total installed capacity of 75MW. Additional capacity will be achieved by changing three of the four installed generating groups (turbines, generators and electric transformers) in order to take more advantage of Santa Eulalia and Rimac Rivers’ capacity. This refurbishment will increase the plant’s capacity up to 82,5 MW without additional environmental impacts, as neither dam enlargements nor new water inlets are necessary.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
Additional energy generated by Callahuanca Plant will displace energy which would otherwise be generated by other generation plants. The amount of thermal energy displacement will be calculated using an indicative simplified methodology for small scale projects (AMS-I.D) based on combined margins, calculating displacement of both operating thermal plants (operating margin, short term) and future generating plants (build margin, long term).
What would the future look like without the proposed CDM project?
Without the carbon finance the proposed project activity will not be approved by EDEGEL. Then, additional capacity would have been offered by a determined mix of thermal and hydro generation plants (according to the combined margins model).
What would the estimated total greenhouse gas (GHG) reduction be with the project?
We have estimated an annual reduction of around 28,235 tCO2e.

Current Status

Earliest project start date
January 2006
Estimate of time required before becoming operational
9 months
What is the project lifetime?
20 years
Current status or phase of the project eg: which of the following phases have been completed:
The project has the following authorisations and status
• Feasibility Study completed
• Financing negotiations are closed
• The letter of approval was issued in January 2005 by the Designated National Authority on CDM.
• National standards on air quality
• Law on sustainable exploitation of natural resources
• Environmental and natural resources code
• GHG mitigation options in Peru, according to Peruvian National Communication to UNFCCC)
• Environmental Impact Assessment is not required by local environmental authorities.
• CERs will be sold to ENDESA, mayor share holder of EDEGEL, the owner company of the project.

Estimated Emission Reductions

Annual: an average of 28,235 tCO2e

• Up to and including 2012: 216,465 tCO2e
• Up to a period of 10 years: 272,934 tCO2e
• Up to a period of 7 years: 216,465 tCO2e
• Up to a period of 14 years: 348,226 tCO2e

Project Benefits

• Part of Callahuanca’s earnings will deriver to reforestation of vulnerable-to-erosion mountain areas with autochthonous species which will allow sustainable exploitation by local communities.
• Increasing availability and reliability of energy supply: contribution to industrial and commercial development.
• Creation of new jobs
• Specific training for plant’s remote control operators.
• Increase of taxes paid to Government.

Project Participant and Financing

Total project cost estimate:
• Development cost: US$ 13,800,000
• Installed Cost: – – –
• Other cost: – – –
• Total project costs: US$ 13,800,000

Sources of finance to be sought or already identified:
• Equity: Financing is closed
• Debt : – – –
• Carbon finance contribution sought: CERs will be sold to ENDESA.

Contact Information: