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Peru plans to invest US$1.3bn in new power grid projects over 2021-2030

3 Jun 2020

The National Interconnected System Financial Operation Committee (COES), which is responsible for the Peruvian electric grid development, has released its preliminary 2021-2030 transmission plan, which would require US$1.3bn of new investments. Ten of the projects envisioned by the plan are expected to start in 2021-2022 and to be commissioned by 2026, for a total investment of US$690m. The near-term projects include the 500 kV Huánuco-Tocache-Celendín-Trujillo, Celendín-Piura and San José-Yarabamba lines, the 220 kV Montalvo-Moquegua line, and the expansion of the 500/220 kV Poroma substation. Another 11 projects, requiring US$628m in investments, would be launched at a later stage. They include the 500 kV Colcabamba-Independencia line, the 220 kV Aguaytía-Pucallpa line and the expansion of the 500/220 kV Yarabamba substation. The projects would allow interconnections to Ecuador, Colombia, Chile, Bolivia and in the long term to Brazil. In addition, they would enable the incorporation of new capacity from non-conventional renewable energy.

In 2017, Peru set a target of 100% rural electrification by 2021, requiring new transmission lines. In November 2019, the country also announced an intermediary target for 2020 of 86% of rural electrification. The government estimates that investment should reach US$1,048m for this purpose and projects will benefit 2.9 million Peruvians. In March 2020, the Ministry of Energy and Mines of Perus signed concession contracts for three high voltage power lines with Cobra’s affiliate La Niña SAC, with the objective of strengthening electricity supply in the departments of Tumbes, Piura, Huánuco and Ucayali. As part of the agreement, the company will build and operate the 500 kV La Niña-Piura line (87 km) in northern Peru, a section of the first 500 kV interconnection with Ecuador, which will be extended with the Piura Nueva - Frontera line; ProInversion will tender the concession for this new section in the next few months. In addition, Cobra will build two 220 kV lines, the 158 km long Pariñas-New Tumbes line and the 73 km long Tingo María-Aguaytía line. Projects also include substations and associated expansions. Cobra Instalaciones y Servicios was awarded the projects in October 2019, after pledging an investment of US$91m. The total operation and maintenance cost of the three lines is forecast to reach US$4m/year.

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