“Tarucani” Hydropower Project

The Project “Tarucani” consists of a run-of-river power plant, it ‘s installed capacity and estimated yearly average generation is 49 MW and 282,5 GWh, respectively. It will be located in Peru, in the south-western department of Arequipa, in the district of Huambo in the province of Caylloma. The region is scarce of vegetation including small agriculture. The project will be connected to the SEIN through a 91,5 km. transmission line to the Cerro Verde Substation.The project is expected to displace 153.957 tons of carbon dioxide equivalent (“tCO2e”) per year, which accounts for 1.077.699 tCO2e for the first crediting period (7 years).

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
“Tarucani” project 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?
The new additions in the future to the grid basically will be thermoelectric plants with natural gas in combined cycle plants replacing most of the other plants with oil, of all types fuels . Tarucani project will displace part of this energy.
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 “Tarucani” project will displace around 153.957 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 is planned to begin on april 2006. The operation is assumed to start in april 2008.
Estimate of time required before becoming operational
2 years
What is the project lifetime?
40 years
Current status or phase of the project eg: which of the following phases have been completed:
• The feasibility study is finished and is available
• The bidding has been already made for the different works
• The concession contract with the government is signed - R. S. Nº 125-2001-EM
• The environmental impact studies are approved - R. S. Nº 125-2001-EM
• The concession for the water use is available
• Energy concession is available
• Financing negotiations are not closed
• The project has the letter of approval from the DNA

Estimated Emission Reductions

Annual: Since 2008 an average of 153.957 tCO2e

• Up to and including 2012: 769.785 tCO2e
• Up to a period of 10 years: 1.539.570 tCO2e
• Up to a period of 7 years: 1.077.699 tCO2e
• Up to a period of 14 years: 2.155.398 tCO2e

Project Benefits

• The hydroelectric would provide energy to the Querque Farmer Community composed by 200 poor families. In addition, the project would provide the following services to this community: Domestic water supply and sewage, construction of an elementary school, a medical center and a landfill.
• This electricity would allow this rural community to improve and diversify their economic activities. Also the construction of an access road to the hydroelectric plant would connect the community to the main road. The construction of the road is planned to respect the borders of the land property.
• Improving the access for water to the livestock.

Project Participant and Financing

Total project cost estimate:
• Civil Works: US$ 25,3 MM
• Machinery and equipment: US$ 17,3 MM
• Transmission lines: US$ 5,8 MM
• Other costs: US$ 3,5 MM
• Total project costs: US$ 52,0 MM

Sources of finance to be sought or already identified:
• Equity: 30 to 40%
• Debt : 70 to 60%
• Carbon finance contribution sought: As much as we can have in advance.

Contact Information: