Dispatch tweak to US$448mn Peru hydro project

In the Puno region, Hydro Global Per (HGP) intends to alter the power dispatch portion of its US$448 million, 205.8MW San Gabán III hydropower project. The company, owned by China Three Gorges and Energaes de Portugal, has submitted a request to the Environmental Certification Service for Sustainable Investments (Senace) to modify the transmission line’s path.

“The energy generated from the project, in principle, would be distributed through the Paquillusi substation to the Onocora substation…however, due to contractual differences between the owner of the construction of the SET [substation] Onocora and the Peruvian State, there is no certainty of the construction and operation of the aforementioned SET,” according to HGP.

The project’s developer is currently working to link the line to the active Pumiri (Azgaro Nueva) substation. The original route would change after kilometre 17.76 and continue for an additional 159.97 kilometres. The infrastructure will cost US$78.8 million and take 12 months to construct.

According to data from energy and mining investment regulator Osinergmin, HGP has proposed delaying the hydro’s commercial launch until 2027 and requested force majeure due to “extraordinary, unforeseeable…events.” 34% of physical development has already occurred.

The concession contract, which was signed in 2016, originally called for a startup date of this February. The power grid coordinator COES’s prediction of an efficient generation coming online in the medium term includes San Gabán III.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us