“138 Kv Transmission Line Majes - Camana” Project

The area of the 138 Kv TL Majes - Camana Project of Sociedad Electrica del Sur Oeste S. A. is located at the south part of Peru, comprehends the Camana province, coast region of the department of Arequipa (1.430-70 meters above sea level). The project extends 65,58 km of the 138 Kv transmission line, from Majes to Camana, constructs 1 substation, and supplies electrical energy to the Camana province. The thermal power plants of Camana consume approx. 72.000 gallons of diesel oil per month (generate 10,76 Gwh per year). The interconnection to SEIN (Sistema Interconectado Nacional) allows removing approx. 2.754,56 CO2 tons 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 Majes – Camana Transmission Line will displace GHG emitted by the thermal power plants in Camana, which use approx. 72.000 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?
In the absence of the project, the energy supply in Camana province will continue to be provided by thermal power generators, which implies high levels of GHG emissions, and continue increasing costs of electricity generation for enterprises and final users, and the use of private thermal power generators will increase.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
According to the Consolidated Methodology ACM0002, in a preliminary study of the World Bank Carbon Finance Business, at the beginning of 2005, an Emission factor of 0,8 tCOe/gwh was obtained for the diesel generators, and 0,544 for energy of the SEIN. Using these factors, it is expected that the Majes - Camana Transmission Line will displace near 2.754,56 tCOe/year (which otherwise will be emitted with thermal power using diesel oil).

Current Status

Earliest project start date
Currently the construction of the project is in its initial phase. It has already started in march 2006 and will be finished in november 2006.
Estimate of time required before becoming operational
9 months
What is the project lifetime?
30 years
Current status or phase of the project
• Definitive Concession - Transmission of Electrical Energy - In process of approval 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 2.754,56 tCO2e

• Up to and including 2012: 16.527,36 CO2e
• Up to a period of 10 years: 27.545,60 tCO2e
• Up to a period of 7 years: 19.281,92 tCO2e
• Up to a period of 14 years: 38.563,84 tCO2e

Project Benefits

• Improvement of the company’s image, working with rice mills that now generate electricity with diesel oil.
• Use of high quality and cheap energy, promoting an efficient natural resources development of the Camana province, improving the quality of life and productive economy.
• Electrification of the province will create new sources of employment.
• Reduction of 40% in the rates for the users, which will allow a better development of agricultural industry.
• The electrical frontier will be amplified.
• The Majes - Camana TL is being constructed under international environmental standards and has received the approval of the Ministry of Energy and Mines (MEM) and the Natural Resources Institute (INRENA).
• The construction of the project will allow the interconnection of new localities and enterprises that still use thermal power generation, with estimated emission reductions of 2.754,56 gallons of diesel oil per year.
• In the near future, the construction of another Transmission Line will attend new localities, such as Ocoña, Atico, Caraveli, as well as auto power generating enterprises.

Project Participant and Financing

Total project cost estimate:
• Installed cost: US$ 3.006.559,10
• Direction: US$ 167.687,44
• Equipment: US$ 301.372,46
• Total project cost: US$ 3.475.619,00

Sources of finance to be sought or already identified:
• Financing of the project is by own resources of Sociedad Electrica del Sur Oeste S. A.

Contact Information: