«Yaupi» Hydropower Expansion Project

ElectroAndes is an electric generation company that operates four hydroelectric generating facilities in the central Andean region of Peru. Its largest facility at Yaupi is a 108 MW plant with sufficient hydrology to maintain a plant factor close to 85%, significantly above the national average. The project described herein aims to increase the plant’s generating capacity by approximately 35 MW, taking advantage of the water flows from the Huachón and Paucartambo rivers, as well as the additional flows (5 m3/sec) to be contributed by the Yuncán facility (owned by a third party) due to come on line in July of 2005. Production at Yaupi is set to increase by 189 GWh per year, with a plant factor close to 73%. The Project is expected to displace 102,816 tCO2e per year, which accounts for 719,712 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?
The «Yaupi» expansion 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 simple and 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 «Yaupi» project will displace around 102,816 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 4th quarter 2007.
Estimate of time required before becoming operational
Two 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 «Yaupi» Expansion has the following authorizations and status
• Authorization for the use of the water resources.
• Environmental studies will not be required due to the fact that this expansion is for less than 50% of existing capacity.
• Definitive Concession granted by Resolución Suprema Nº 042-2003-EM of December 3, 2003.
• Concession agreement in place with the Peruvian government for an indefinite time.
• Technical feasibility study completed.

Estimated Emission Reductions

Annual: an average of 102,816 tCO2e

• Up to and including 2012: 514,080 tCO2e
• Up to a period of 10 years: 1,028,160 tCO2e
• Up to a period of 7 years: 719,712 tCO2e
• Up to a period of 14 years: 4,536,470 tCO2e

Project Benefits

• The expansion of the «Yaupi» hydroelectric plant will use the water resources available from the Huachón and Paucartambo Rivers, producing cheap energy with low environmental impact compared to the electricity generated from thermal plants.
• The project would create new jobs during construction, and would contribute to the economic growth of the country by supplying cheaper energy to the national grid.
• The expansion of «Yaupi» fulfils the environment requirements as per the Ministry of Energy and Mines.

Project Participant and Financing

Total project cost estimate:
• Electromechanical equipment: to be determined
• Transport, assembly, etc.: to be determined
• Additional penstock: to be determined
• Total project costs: to be determined

Sources of finance to be sought or already identified:
• Equity: 0%
• Debt: 100%
• Carbon finance contribution sought: Enough to offset the incremental debt burden that the project will impose on the company.

Contact Information: