«Los Perros / Bayovar» Wind Energy Project

The Project is the first great scale Wind Energy Project in Peru. The wind measurements in the «Great Desert of Sechura», in Peru’s northern coast, indicates a extreme stable wind regime, making the project feasible under the normal energy market conditions. The 20 MW grid connected wind energy project will replace energy generated by the oil fired thermo-electrical power plants, mainly operating in the northern part of Peru’s national grid system. Referring to baseline studies the project will reduce 24,000 tCO2e yearly due to replacement of the emissions of the grid connected thermo electrical facilities. The project’s total CDM contribution will be much higher, since the project will construct a transmission line, to connect former isolated, diesel-generator supplied, townships to the national grid.

     

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
Since the marginal costs of the generation by the wind turbines are very low, the wind energy facility will be dispatched whole the time.
This will replace energy and GHG emissions normally generated by the cost expensive thermo-electrical power plants using diesel, bunker, coal and national gas.
Additionally the project will connect an isolated township (Bayovar) in the desert of Peru. The great fishery industry is using 10 MW diesel generators for energy supply. The grid connection of the township will make it possible to replace these Off-grid power plants, with its related GHG emissions.
What would the future look like without the proposed CDM project?
Probably future additions to the grid basically will be thermoelectric plants using natural gas in combined cycle process replacing this way most of the other facilities with oil, of all types.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
«Tarucani» will displace more than 175,000 tCO2e/year which otherwise will be emitted by thermal power plants with diesel, residual (bunker), carbon and natural gas.

Current Status

Earliest project start date
Start of commissioning: January 2006
Estimate of time required before becoming operational
1 year after project commissioning (end of 2006)
What is the project lifetime?
21 years
Current status or phase of the project eg: which of the following phases have been completed:
• Pre-Feasibility Study finished
• Two years of wind measurements on 40m, 30m and 20m height on going at project’s site
• PPA negotiations started.
• Debt financing identified

Estimated Emission Reductions

The estimated emission reductions have two components:

a) Replacement of GHG gas emissions in the national grid system
b) Replacement of the existing Off-Grid diesel generators due to the construction of a transmission line

• The contribution of a) is estimated to yearly: 24,000 tCO2e due to the baseline studies of Peru
• The contribution of b) has to be studied.

 

Project Benefits

Peru’s energy generation highly depends on hydro power and thermo electrical power. Due to climate changes the first is assumed to decrease within the next years. The project will be the first wind energy project in Peru, diversifying the energy generation of the country. Almost 90% of the Peruvian coast is deserted land, with an excellent wind regime. The project is assumed to have a key function for future development of renewable energy projects in Peru.
Additional benefit of the project is the improvement of the infrastructure in the deserted region and the connection of the isolated township of Bayovar replacing off-grid diesel generation.

Project Participant and Financing

Total project cost estimate:
Development and Engineering Costs: US$ 1,100,000
Direct costs of generation equipment: US$ 22,400,000
Direct costs of transmission equipment: US$ 2,400,000
Miscellaneous costs: US$ 500,000
Total Costs: US$ 26,400,400

Sources of finance to be sought or already identified:
• 20% Equity (partly identified)
• 80% Soft Loan Debt (application in process)


Contact Information:

Developer: SOLEOL S.A.C.
CDM promoter: National Environmental Fund (FONAM)
Name: Julia Justo, Claudia Monsalve, Tania Zamora
Phone/Fax Numbers: (51-1) 449-6200
E-mail: jjusto@fonamperu.org / cmonsalve@fonamperu.org
tzamora@fonamperu.org / fonam@fonamperu.org