Hydropower Projects Portfolio

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Hydropower

Projects Portfolio

By Jorge Aguinaga Diaz General Director for Electricity

MINISTRY OF ENERGY AND MINES 18th Meeting, Iquitos- Peru, 04 March 2008

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Content

I. GENERAL ASPECTS

• National Electric System

• Development Perspectives of the Power Generating System

II. HYDROPOWER POTENTIAL

• Characteristics

• Hydropower potential knowledge

III.

• General Table

• Greenfield Hydropower Projects for Electricity Exportation

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CONTENT

I. GENERAL ASPECT

• National Electric System

• Development Perspectives of the Power Generating System

II. HYDROLECTRIC POTENTIAL

III.

4 Electricity coverage : 80 %

Consumption per capita : 943 KW.h/Inhabit Installed Power : 7 059 MW Hydropower (46 %) Thermal (54%) Production : 29 857 GW.h Hydropower (65%) Thermal (35%) Transmission Lines : 220 kV ( 5 677 km ) 138 kV ( 3 636 km )

Sales to final clients : 24 621 GW.h

Sales in US$ : 1 825 Million

Number of users : 4,35 Million

NATIONAL ELECTRIC SYSTEM

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DEVELOPMENT PERSPECTIVES OF THE POWER

GENERATING SYSTEM

For Peru internal consumption 9 000 MW National Power Capacity required

through the next 20 years

Potential Hydropower Projects

T T T H H H H H T T 0 5 000 10 000 15 000 20 000 2008 2018 2028 C a p a c ity (MW ) Thermal Projects Hydro Projects Current Hydro Current Thermal 60 000 Potential Hydropower Projects Greenfields for Exportation Purposes 51 000 MW

Content

I. GENERAL ASPECTS

II. HYDROPOWER POTENTIAL • Characteristics

• Hydropower potential knowledge

III.

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CHARACTERISTICS

The Amazon River Hydrographic Basins

1. The Coastal Region 2. The Andean Highlands 3. The Amazon Rain Forest:

 The cloud forest  The lowland jungle

IQUITOS

LIMA

Divided on three areas:

There are three hydrographic systems:  Pacific: 53 basins  Atlantic: 49 basins  Titicaca Lake: 9 basins

One of the largest rivers in the world

Andean Highlands Amazon Rain Forest Coastal Region

HYDROPOTENTIAL KNOWLEDGE

Hydrographical Knowledge

Historical Measurements

1. The National Hydropower Potential Study (1980) lists the existing hydrometrics (467) and rain stations (1255)

2. Electroperu compiled information of historical flows on the Atlantic Slope side (1975-2000): Marañon river (24 years) and Huallaga river (14 years), among others

Hydropower Projects

 548 HHPP identified by the Study of the Hydropower National Potential (1976 to 1979)

 328 HHPP technically feasible studies to develop

 200 000 MW of theoretical hydroelectric potential from which 58 937 MW are technically usable

1. National Map 1:100 000 scale available

2. The studies of main hydropower projects are more concentrated in topographic issues than in hydrological info

BASINS PACIFIC ATLANTIC TITICACA LAKE INTERNAL BASINS HYDROLOGICAL BASINS OF PERU

Rainy

Zone

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Content

I. GENERAL ASPECTS

II. HYDROPOWER POTENTIAL

III.

• General Table

• Greenfield Hydropower Projects for Energy Exportation

GENERAL TABLE

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HYDROPOWER PROJECTS FOR ELECTRICITY

EXPORTATION (1)

2 Projects

Nº Plants Region

1 C.H. PONGO DE MANSERICHE 7 550 Loreto

2 C.H. CUMBA 4 825 Amazonas

3 C.H. CHADIN 2 600 Amazonas y Cajamarca 4 C.H. LA BALSA 915 Cajamarca 5 C.H. CHAGLLA 444 Huánuco 6 C.H. RENTEMA 1 525 Amazonas 7 C.H. LA GUITARRA 220 Huancavelica 8 C.H. MAN 270 286 Huancavelica 9 C.H. SUMABENI 1 074 Junín 10 C.H. PAQUITZAPANGO 1 379 Junín 11 C.H. TAMBO - PTO. PRADO 620 Junín

C.H. VIZCATÁN y CUQUIPAMPA 1 550 Huancavelica y Ayacucho 14 C.H. INA 200 1 355 Madre de Dios

15 C.H. URU 320 942 Cusco 19 285 Capacity (MW) TOTAL 12 y 13 HP La Balsa HP Rentema

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HYDROPOWER PROJECTS FOR ELECTRICITY

EXPORTATION (2)

HP Urubamba

HH.PP. VIZCATAN & CUQUIPAMPA 1550 MW

Nº Plants Region

1 C.H. PONGO DE MANSERICHE 7 550 Loreto

2 C.H. CUMBA 4 825 Amazonas

3 C.H. CHADIN 2 600 Amazonas y Cajamarca 4 C.H. LA BALSA 915 Cajamarca 5 C.H. CHAGLLA 444 Huánuco 6 C.H. RENTEMA 1 525 Amazonas 7 C.H. LA GUITARRA 220 Huancavelica 8 C.H. MAN 270 286 Huancavelica 9 C.H. SUMABENI 1 074 Junín 10 C.H. PAQUITZAPANGO 1 379 Junín 11 C.H. TAMBO - PTO. PRADO 620 Junín

C.H. VIZCATÁN y CUQUIPAMPA 1 550 Huancavelica y Ayacucho 14 C.H. INA 200 1 355 Madre de Dios

15 C.H. URU 320 942 Cusco

Capacity (MW)

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Item MW Investment

US $ MM TM CO2 MM_{per year} US $ G-B_{per year}

Deffinitive Concessions 914 1,143 2.6 32 Temporal Concessions 1,600 2,000 4.6 56 Greenfield HEPP 19,680 24,600 56.9 683 Total 22,194 27,743 64.2 770

Note.- Considers 0,55 CO₂ TM / MWh and $12/CO₂ TM

HEPP INVESTMENT, GREEN BONDS & BAR ENERGY PRICE

Marginal Cost Evolution

The Compound Electrical Energy Bar Price in the Peruvian Electrical System is close to $40 per MWh ($33 due energy and $7 due the capacity)

Content

I. GENERAL ASPECTS

II. HYDROPOWER POTENTIAL

III.

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PROMOTION INCENTIVES TO DEVELOP HEPP [1]

 Attractive legal framework for Foreign Direct Investment based on freedom and equality  Profits Free Exportation

 Country risk below the Latin American average

 Lowest inflation in Latin America and a very stable exchange rate (free)

 Economy committed to the commercial integration process (USA, Canada, and EU)

 Sustainable economy growth

 Important flow hydro head sources

 Permanent Rainy regime

 Localization between south American neighbors.

Physical conditions

Legal and Economical

 Close to investment grade

 First place in Latin America regarding the State receptiveness to investment (WEF).

 Second place in Latin America for protecting the Foreign Direct

Investment (WB).

Ranking

PROMOTION INCENTIVES TO DEVELOP HEPP [2]

 General Sales Tax Drawback Regime,

 A HEPP portfolio should be maintained as ordered by the Law Nº 28832  Bidding Process for energy supply with fixed prices in long term

 Guarantee for recover the investment in Transmission Power Systems  The accelerated depreciation method for any HEPP size is included in

the projected law for generating power using renewable energy resources

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Thanks for your kind attention

[email protected]

http://www.minem.gob.pe/

LA BALSA HEPP, 915 MW Installed Capacity. Located on The Marañon River, downstream from the La Balsa Village

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CHADIN HEPP, 2, 600 MW Installed Capacity. Located on The Marañon River, upstream from the intersection with

the Llaucano River

CHAGLLA HEPP, 444 MW Installed Capacity Huallaga River, downstream from Huanuco City

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RENTEMA HEPP, 1 525 MW Installed Capacity. Located on the Marañon River. Amojao Hydrometric Station,

downstream from the Rentema Pongo site

LA GUITARRA (MAN 250) HEPP, 220 MW Installed Capacity. Located on The Mantaro River, downstream Restitución HEPP

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MANTARO 270 HEPP, 286 MW Installed capacity. Located on The Mantaro River, near the Apurimac River and Pariahuanca Village

intersection

HEPP Scheme on the Ene River and Tambo River

SUMABENI HEPP (1 074 MW), PAQUITZAPANGO HEPP (1 379 MW) and TAMBO-PUERTO PRADO HEPP (620 MW)

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PAQUITZAPANGO (ENE 40) HEPP, 1379 MW Installed Capacity. Located upstream from intersection of Ene River and Perene River

Map

PAQUITZAPANGO HEPP, 1 379 MW Installed capacity. Located on The Ene River, upstream from its intersection

with The Perene River

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TAMBO – PUERTO PRADO HEPP, 620 MW Installed capacity. Located downstream the intersection of the Perene River

and The Ene River

Map

TAMBO – PUERTO PRADO HEPP, 620 MW Installed capacity. Located on The Tambo River, downstream from the

intersection of The Ene River and The Perene River

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URUBAMBA 320 HEPP, 942 MW Installed capacity. Located on The Urubamba River, downstream from the intersection

with The Paucartambo River

30 Field of Influence

H.P. Pongo de Manseriche.

Next Map

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Pongo de Manseriche

Next Map

32 Pongo

Next Map

33 0 20 40 60 80 100 120 140 160 J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c J a n 2004 2005 2006 2007 2008 MONTH U S $ /M W .h Average Montly Marginal Cost Short Term Active Enegy Bar Price Back