“Aricota 3” Hydropower Project

EGESUR is an electric generation company that operates two hydroelectric generating facilities in the south Andean region of Peru. This run of the river project will be built upstream of the existing Aricota 2 hydro power plant and using its water discharged that corresponds to the Curibaya river basin. The purpose of the project is the generation of renewable energy for the National Electric Grid (SEIN). The project plans to have an installed capacity of 19 MW and an estimated annual energy production of 52,5 GWh.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
The 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 production with natural gas in single and combined cycle plants replacing most of the other plants with other plants with oils, of all types. National Policies, sectoral policies, and the new natural gas explotation “Camisea” particular circumstances foster thermal technology against hydro-developments.
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 2005 got a Baseline Emission Factor of 544 tCO2e/gwh. Using that emission factor it is expected that “Aricota 3” project will displace around 28.560 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 preliminary design was complete (available). The final design & feasibility will be finished in december 2006.
Estimate of time required before becoming operational
We plan to complete the project in mid 2010.
What is the project lifetime?
50 years
Current status or phase of the project eg: which of the following phases have been completed:
• Feasibility study finished (available).
• The environmental and archaeological impact studies have been done.
• The concession for the water use was given by the Ministry of Agriculture.
• A permanent and definite Energy Concession was approved under Supreme Resolution.

Estimated Emission Reductions

Annual: an average of 28.560 tCO2e

• Up to and including 2012: 57.120 tCO2e
• Up to a period of 10 years: 285.560 tCO2e
• Up to a period of 7 years: 199.920 tCO2e
• Up to a period of 14 years: 399.840 tCO2e

Project Benefits

• The hydroelectric plant will use the water resources available from the Laguna Aricota, producing cheap energy with low environmental impact comparing with the electricity generated from thermal plants.
• Generation of Hydro-electricity would allow displacing or shutting down a carbon power thermal plant and would also allow rural communities the improvement their economic and production activities.
• The project would create new jobs, develop the surroundings and in general would contribute to the economic growth to a big portion of the country by supplying more energy through the interconnection of the project to the national grid.

Project Participant and Financing

Total project cost estimate:
• Development cost: US$ 600.000
• Installed cost: US$ 19.300.000
• Other Cost: US$ 500.000
• Total project costs: US$ 20.400.000

Sources of finance to be sought or already identified:
• Equity: 5,4%
• Debt: 94,6%
• Carbon finance contribution sought: As much as we can have in advance.

Contact Information: