Peru's private investment promotion agency, ProInversión, San Gabán S.A. and Hydro Global Peru S.A.C., a consortium made up China Three Gorges Corporation and EDP – Energías de Portugal, have signed the contract to develop the San Gabán III hydroelectric power plant.
The project involves the design, finance, build, operation and maintenance of a new 205.8 MW power plant. It also includes the development of a 220 kv line to connect the plant to an electrical substation, which is expected to be either Onocora substation or Azángaro substation.
The concession contract will be for a period of 30 years plus 84 months to develop the project and the total project investment is estimated at US$438 million.
The process to develop the new facility was initiated after Proinversión received a private initiative proposal from Hydro Global. In early 2016, Proinversión launched a request for expression of interest (RFEOI) for the project, at that time requisites for potential developers included: balance sheet with assets of more than US$600 million and experience developing hydroelectric assets of more than 350 MW.
In late February, we reported that Peru's energy and mining regulator Osinergmin awarded 20-year contracts to 13 renewables projects totaling 430 MW, covering almost 100% of the electricity on offer. Enel Green Power (EGP) was awarded the right to sign 20-year energy supply contracts for 126 MW wind power, 180 MW solar PV and 20 MW of hydro capacity.