Carhuaquero 4 Hydroelectric Power Plant

The Project is a small run-of-river hydroelectric power plant, located adjacent current Carhuaquero hydro power plant in Cajamarca- Perú and using water of the Chancay River. The Purpose of The Project is renewable electricity generation for the National Electric Grid (SEIN). The Project installed capacity and projected yearly average generation is 9,8 MW and 42 GWh per year, respectively. The Project is expected to displace approximately 169.638 tCO2e for the first crediting period (7 years), generating the equivalent amount of Certified Emission Reductions (CERs).

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
“Carhuaquero 4 Hydro Plant” project is a small CDM project that will displace from the national grid, some thermal power plants that use diesel, residual (bunker), coal or natural gas as fuel, reducing in these way CO2 emissions.
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 (Gas Turbines) with natural gas in Single and Combined Cycle plants replacing most of the other plants with other plants with oils, of all types. The project will assist the National Grid to keep thermal plants shut and use them only as stand-by power generation, therefore, displacing expensive heavy fuel oil, diesel, coal and gas fired generation and at the same time; reducing CO2 emissions to the atmosphere by generating energy without GHG emissions.
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 Carhuaquero 4 will displace approximately 24.234 ton CO2 each/year, which otherwise will be emitted by thermal power plants of the national grid.

Current Status

Earliest project start date
The Basic engineering and bid documents preparation are in process. The bidding for generation equipment supply and civil construction has been during November 2005. The generation equipment supply was awarded in March to European company and the civil construction is expected to be awarded by June 2006. The construction is scheduled for 17 months; therefore The Project starting date is expected to be on September 2007.
Estimate of time required before becoming operational
Since may, seventeen (17) months. The Project starting date is expected to be on september 2007.
What is the project lifetime?
More than 40 years
Current status or phase of the project
• Water permit formalization in process
• Authorization by Energy and Mines Ministry is in process
• Financing (own resources) is approved by our corporation
• Bidding documents for construction in progress

Estimated Emission Reductions

Annual: Since 2007 an average of 24.234 tCO2e

• Up to and including 2012: 121.170 tCO2e
• Up to a period of 10 years: 242.340 tCO2e
• Up to a period of 7 years: 169.638 tCO2e
• Up to a period of 14 years: 339.276 tCO2e

Project Benefits

• Project would support and improve the regional electric supply because the new energy generation would give more reliability and quality to the electric system in 22,9 kV and 138 Kv.
• The project would contribute to sustainable development in rural areas.
• The project fulfills the environmental standards in Peru, local people would support it development.
• Increase possibilities for rural electrification around The Project Site.
• During construction the project will generate local jobs and more economic activity in surrounding towns such as La Ramada, Chongoyape and others.
• Serve as a small demonstrative project for clean renewable energy generation in the country.

Project Participant and Financing

Total project cost estimate:
• Development cost: US$ 300.000
• EPC Cost: US$ 5.000.000
• Engineering and Management: US$ 400.000
• Other costs: US$ 300.000
• Total Investment: US$ 6.000.000

Sources of finance to be sought or already identified:
• Financial mainly will be provided by the internal resources of Duke Co.
• Carbon finance contribution sought: We are looking for the best deal.

Contact Information: