The deal
Peru’s Private Investment Promotion Agency has awarded Interconexion Electrica (ISA) a contract to invest $141m (522.25m sol) in three power transmission lines in Peru.
Why it matters
The power transmission lines will cover 240km, providing energy to Piura, San Martin and Arequipa. Such regions are exposed to the El Nino phenomenon, which impacts wind speeds and therefore disrupts renewable energy sources. The new development will help to overcome this and provide a more reliable energy supply in Peru.
According to ISA, the lines will help with Peru’s energy transition by “favouring the entry of clean energies”. The clean energy mix is expected to account for 20% of the nation’s total energy supply by 2030. However, a report by Enel and Deloitte was more optimistic, claiming 81% of Peru’s power generation could come from renewable sources by 2030. The country’s geography offers opportunities for solar, wind, geothermal and hydroelectric energy.
Emilio Posada, CEO of ISA, stated: “This execution plan includes assets at the national level that are identified in the 2021–30 transmission plan in Peru, which contributes significantly to the effort to promote the energy transition in this country, in addition to promoting the development of territories where the works will be.”
The details
The awarded contracts will have an execution period of up to 51 months. The baseline investment value is $141m and the projects will have a concession period of 30 years from commercial operation.
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