138 KV Transmission Line Tayabamba – Llacuabamba Project

The area of the 138 KV TL Tayabamba – Llacuabamba Project, of MARSA and HORIZONTE, is located in the Eastern Cordilleran range, 600 km straight line NE of Lima, and comprehends nearly the entire Patáz province of the La Libertad department. The project prolongs 31,5 km, the government 138 KV transmission line from Tayabamba to Llacuabamba, and constructs 5 substations and 11,5 km of primary 22.9 KV lines towards Retamas and San Andrés, operations centers of HORIZONTE and MARSA gold mining companies. The two companies consume approx. 340,000 gallons of diesel oil per month. The interconnection to SEIN (Sistema Interconectado Nacional) allows removing 18.000 CO2 t per year, generating the equivalent amount of Certified Emissions Reductions (discounting the emission factor of SEIN).

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
The Tayabamba – Llacuabamba Transmission Line will displace GHG emitted by the thermal power plants of MARSA and HORIZONTE, which use approx. 340.000 gallons of diesel oil per month, replacing this generation with energy from the SEIN system.
What would the future look like without the proposed CDM project?
The interconnected load of MARSA and HORIZONTE makes it possible to electrify the Patáz province. The great distance to the SEIN system makes it technically very difficult to operate a line to Patáz province without connecting the electric load of the mining companies to balance all the system. Only thus it is possible to extend the electric frontier to the province and to replace the diesel generation of the companies and localities.
What would the estimated total greenhouse gas (GHG) reduction be without the project?
According to the Consolidated Methodology ACM002, in a preliminary study of the World Bank, at the beginning of 2005, an Emission Factor of 0,8 tCOe/gwh was obtained for the diesel generators, and 0,56 for energy of the SEIN. Using these factors, it is expected that the Tayabamba-Llacuabamba Transmission Line will displace near 18.000 tCOe/year (which otherwise will be emitted with thermal power using diesel oil).

Current Status

Earliest project start date
Construction of the project is in the initial phase, start up is expected at the end of the first quarter of 2006.
Estimate of time required before becoming operational
4 months
What is the project lifetime?
30 years
Current status or phase of the project:
• Definitive Concession – Transmission of Electrical Energy –Approved by The Ministry of Energy and Mines.
• Environmental Impact Study approved by The Ministry of Energy and Mines and the National Institute for Natural Resources (INRENA).
• Rights of Way, obtained and approved.
• Feasibility and Detailed Engineering Studies Completed.
• Financing of the Project –Approved and proceeding.
• Project now in the construction Stage.

Estimated Emission Reductions

Annual: an average of 18,000 tCO2e

• Up to and including 2012: 126,000 tCO2e
• Up to a period of 10 years: 180,000 tCO2e
• Up to a period of 14 years: 252,000 tCO2e

Project Benefits

• It will improve the environmental image of the companies and communities that now generate electricity with diesel oil.
• Use of high quality and cheap energy will promote efficient natural resources development of the province, improving the quality of life and productive economy and activities of the rural communities.
• Electrification of the province will create new sources of work. The province has an area of 4.226,53 km2 and an estimated population of 75.000 inhabitants. 45% of the houses do not have any basic service; and less than 30% of the inhabitants have economic activity (mainly in agriculture).
• The Tayabamba-Llacuabamba TL is constructed under international environ- mental standards and has received approval of the Ministry of Energy and Mines (MEM) and of Instituto de Recursos Naturales (INRENA).

Project Participant and Financing

Total project cost estimate: US $ 9,300,000
• Development cost (studies, administration): US$ 450,000
• Installed cost: US$ 8,700,000
• Other Cost (rights of way) US$ 150,000
• Total project costs: US$ 9,300,000

Sources of finance to be sought or already identified:
Financing of the Project is by Crédito Leasing S.A. Financing is approved and being executed.

Contact Information: