«PARIAC CH 5» Hydropower Project

This run of the river project will be built upstream of the existing PARIAC mini hydro facilities using the same hydro resources and the same power substation, which will not require any expansion of the power transformer. The project does not need facilities to regulate its energy production. The project has an installed capacity of 5 MW and an estimated energy annual production of 34.8 GWh.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
«PARIAC CH 5» Project is a small scale 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?
We foresee that the new capacity added to the grid in the future will be basically thermal power plants burning natural gas in combined cycle plants, which will replace most of the other plants operating with oil, coal and other fossil fuels. National policies, energy sector policies and the new natural gas exploitation of «Camisea» lead to particular circumstances that tend to foster thermal technology against hydro-developments.
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 small-scale 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 «PARIAC CH 5» will displace approximately 20,080 tCO2e each/year, which otherwise will be emitted by thermal power plants of the national grid.

Current Status

Earliest project start date
The preliminary design using the left river edge was completed in February 2005; the bidding for the final feasibility study will finalize on April 22nd 2005. The final feasibility study will compare both river edges and is planned to be finish in July 2005.
Estimate of time required before becoming operational
We plan to complete the project on December 2006.
What is the project lifetime?
50 years
Current status or phase of the project eg: which of the following phases have been completed:
• Energy and water concession have been already given.
• Cahua’s board approved the «go ahead» of the final feasibility study in order be ready to make an investment decision on August 2005.

Estimated Emission Reductions

Annual: an average of 20,080 tCO2e

• Up to and including 2012: 120,478 tCO2e
• Up to a period of 7 years: 140,557 tCO2e
• Up to a period of 10 years: 200,796 tCO2e
• Up to a period of 14 years: 281,114 tCO2e

Project Benefits

• 200 indirect jobs during construction works.
• Displaces around 20,080 tCO2e/year which otherwise will be emitted by thermal power with diesel, residual (bunker), coal and natural gas
• Creates the opportunity to easily interconnect the villages located in the surroundings of the project area of influence.
• Increases the participation of the hydro-power generation in the Peruvian electricity total demand.

Project Participant and Financing

Total project cost estimate:
• Development cost (own resources): US$ 420,400
• Equipment cost: US$ 2,537,800
• Civil works: US$ 2,914,000
• Total project costs: US$ 5,872,200

Sources of finance to be sought or already identified:
• Equity: US$ 2,936,100
(to be determined upon completion of feasibility analysis)
• Debt (through the Bonus emission program): US$ 2,936,100
(to be determined upon completion of feasibility analysis)
• Carbon finance contribution sought: As much as we can have in advance.

Contact Information: