«PARIAC CH 2-3» Hydropower Optimization Project

This run of the river project will optimize the operation of four small hydro power plants, concentrating the facilities in only two hydro power plants, reducing the environmental impacts (due to the closing two powerhouses) and increasing the effective power output in 0.7 MW. The existing facilities currently do not use the full installed capacity of the equipment as per designed and also do not take properly advantage of the geographic leap. The project maintains the hydro power resource utilization and does not need facilities to regulate its energy production. The project will increase the installed capacity in 0.7 MW and the annual production of energy in 5 GWh.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
«PARIAC CH 2-3» 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 2-3» will displace approximately 2,885 tCO2e each/year, which otherwise will be emitted by thermal power plants of the national grid.

Current Status

Earliest project start date
The feasibility studies were completed in January 2005 and presently a Consulting Company is preparing the EPC’s documents for the bidding process that we expect to complete in July, 2005.
Estimate of time required before becoming operational
We plan to complete the construction of the optimization project before July 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» with the EPC’s process.

Estimated Emission Reductions

Annual: an average of 2,885 tCO2e

• Up to and including 2012: 18,512 tCO2e
• Up to a period of 7 years: 21,397 tCO2e
• Up to a period of 10 years: 30,052 tCO2e
• Up to a period of 14 years: 40,390 tCO2e

Project Benefits

• 50 indirect jobs during construction works.
• Displaces around 2,885 tCO2e/year which otherwise will be emitted by thermal power with diesel, residual (bunker), coal and natural gas.
• Optimizes the operation of the four small hydro power plants scheme, concentrating the facilities in only two hydro power plants facilities.
• Reduces the environmental impacts (due to the closing two powerhouses).
• Increases and optimizes the use of the equipments’ design capacities and also take properly advantage of the geographic leap.
• Reduces the operation & maintenance costs.

Project Participant and Financing

Total project cost estimate:
• Development cost: US$ 25,000
• Installed cost: US$ 804,000
• Other Cost: US$ 180,000
• Total project costs: US$ 1,009,000

Sources of finance to be sought or already identified:
• Equity: US$ 1,009,000 (own resources)
• Debt: Not required
• Carbon finance contribution sought: As much as we can have in advance.

Contact Information: