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Peru hydropower development slowed by COVID-19

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Peru hydropower development slowed by COVID-19

The COVID-19 pandemic has taken its toll on hydropower development in Peru as the energy and mines ministry accepted a force majeure request from Inland Energy to modify the definitive concession for the 288 MW Lluclla hydro project.

According to BNamericas, the company sought an extension of the commercial operation startup date as a result of the state of national emergency issued related to COVID-19. The government declared the emergency in March 2020. Under the latest extension, the declaration ends on March 1.

In a resolution, the ministry said that its electricity department determined that the project’s works execution calendar was impacted by 364 days.

Under the original timetable, project construction in the southern region Arequipa was to have begun in January 2021. Equipment was supposed to arrive in December 2022, installation was slated for June 2023 and operations startup in June 2025.

Inland Energy, a subsidiary of power distributor Luz del Sur, picked up the Lluclla concession in December 2020.

The company’s development pipeline includes definitive concessions for the 280 MW Santa Teresa II hydro project and a 40.4 MW planned expansion of the 98.2 MW Santa Teresa hydro.

Other projects affected include 51 MW Olmos 1, for which the ministry approved a similar request filed by Sindicato Energético (Sinersa). Under a new extension, Sinersa was granted an additional 90 days to bring the plant online. The latest commercial operation startup date had been July 2026, and construction is scheduled to begin in 2023.

Information from energy and mining investment regulator Osinergmin shows that other hydro projects being affected by the pandemic are 9.5 MW Alcaparrosa, 102.1 MW Anto Ruiz III, 8.4 MW Casca, 9 MW Marca, 9.9 MW Miraflores, 205.8 MW San Gabán III, 88 kW San Juan and 83.2 MW Tulumayo V.