Peru to hold a major renewable energy auction

Peru’s Ministry of Mines and Energy has called for an auction for renewable energy projects which plans to secure up to 415 gigawatt-hours (GWh) annually of solar power, according to rules published last week.

If an average 20% capacity factor is assumed for utility-scale solar projects in Peru, it would take around 240 MW of solar PV to generate 415 GWh annually.

In the fourth national renewable energy auction the nation will contract a total of 1,300 GWh from biomass, wind and solar PV. Projects must be put into operation before the end of 2018, and supply contracts will be signed for 20-year terms.

Registration opened on September 4 and will remain open through October 30. December 18 is be the deadline for submission of bids, and the auction will be resolved by the end of next January.

Through this auction the government seeks to reach 5% renewable energy, excluding large hydroelectric projects. To date, five solar PV projects have been awarded in Peru through national auctions. The five plants are in operation and represent a total capacity of 96 MW.

The government has also given permission for feasibility studies for 11 solar PV projects with a combined capacity of 590 MW. These projects are located in the south of the nation, where solar resources are excellent and where there is strong demand for electricity from the mining industry. Specifically, these projects are located in the departments of Arequipa, Tacná, Moquegua and Ica.

Translation and additional reporting by Christian Roselund