First renewable energy tender contracts assigned in Peru

Most of the offers did not qualify because prices offered were above the maximum.  At its first renewable energies tender, Peru contracted 26 projects for a total of 411 MW. The 20 year contracts follow a controversial call for tenders and were awarded by the Organismo Superior de la Inversión en Energía y Minería (Osinergmin).

Small hydro took the cake with 17 projects totalling 161 MW, wind energy came in second with 3 projects totalling 142 MW. Four solar power for total 80 MW and 2 biomass energy projects for 27.4 MW followed.

Most of the participants were discarded because their bids exceeded the maximum price established by the tender. The maximum price per MWh of hydropower was $74 dollars (54 euros), $ 110 (80 euros) per MWh of wind power, $ 269 (197 euros) per MWh of solar power and $120 (88 euros) per MWh of biomass.

Iberoperuana Inversiones, the Spanish-Peruvian consortium, is planning to invest $280 million to build two wind farms in northern Peru, $210 million in the construction of a wind farm in Cupisnique, located about 55 miles north of Trujillo in the La Libertad department, which will produce 80 megawatts of energy. The second wind farm will be built in Talara (30 MW), located on the coast in the Piura department, and will require a $70 million investment.

Wind turbines on Peru’s coast could produce 65,152 MW. The wind farms would take up 4,654 square kilometres, approximately two percent of the country’s total coastal land area.