Business Network Forum 18th Meeting, Iquitos- Peru, 04 March 2008 MINISTRY OF ENERGY AND MINES Hydropower Projects Portfolio By Jorge Aguinaga Diaz General Director for Electricity 1
Content I. GENERAL ASPECTS National Electric System Development Perspectives of the Power Generating System II. HYDROPOWER POTENTIAL Characteristics Hydropower potential knowledge III. HYDROPOWER PROJECTS PORTFOLIO General Table Greenfield Hydropower Projects for Electricity Exportation IV. PROMOTION INCENTIVES TO DEVELOP HYDROPOWER PROJECTS 2
CONTENT I. GENERAL ASPECT National Electric System Development Perspectives of the Power Generating System II. HYDROLECTRIC POTENTIAL III. HYDROPOWER PROJECTS PORTFOLIO IV. PROMOTION INCENTIVES TO DEVELOP HYDROPOWER PROJECTS 3
Electrical Basic Data 2007 NATIONAL ELECTRIC SYSTEM Electricity coverage : 80 % IQUITOS 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 Distribution losses : 8,1 % 4
Capacity (MW) DEVELOPMENT PERSPECTIVES OF THE POWER GENERATING SYSTEM 60 000 National Power Capacity required through the next 20 years Potential Hydropower Projects 20 000 15 000 T Greenfields for Exportation Purposes 51 000 MW 10 000 5 000 0 T H H H H H T T T 2008 2018 2028 For Peru internal consumption 9 000 MW Thermal Projects Hydro Projects Current Hydro Current Thermal Potential Hydropower Projects 5
Content I. GENERAL ASPECTS II. HYDROPOWER POTENTIAL Characteristics Hydropower potential knowledge III. HYDROPOWER PROJECTS PORTFOLIO IV. PROMOTION INCENTIVES TO DEVELOP HYDROPOWER PROJECTS 6
CHARACTERISTICS Topography Divided on three areas: IQUITOS Amazon Rain Forest 1. The Coastal Region 2. The Andean Highlands 3. The Amazon Rain Forest: The cloud forest The lowland jungle Hydrographic Basins There are three hydrographic systems: LIMA Coastal Region Andean Highlands Pacific: Atlantic: Titicaca Lake: The Amazon River 53 basins 49 basins 9 basins One of the largest rivers in the world 7
HYDROPOTENTIAL KNOWLEDGE Hydrographical Knowledge 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 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 Rainy Zone Hydropower Projects 548 HHPP identified by the Study of the Hydropower National Potential (1976 to 1979) 328 HHPP technically feasible studies to develop BASINS PACIFIC ATLANTIC TITICACA LAKE INTERNAL BASINS 200 000 MW of theoretical hydroelectric potential from which 58 937 MW are technically usable HYDROLOGICAL BASINS OF PERU 8
Content I. GENERAL ASPECTS II. HYDROPOWER POTENTIAL III. HYDROPOWER PROJECTS PORTFOLIO General Table Greenfield Hydropower Projects for Energy Exportation IV. PROMOTION INCENTIVES TO DEVELOP HYDROPOWER PROJECTS 9
GENERAL TABLE HHPP LARGER THAN 100 MW 1. Definitive Concession: 6 HHPP, 914 MW 2. Temporary Concession: 8 HHPP, 1 600 MW 3. Greenfield Projects without Concession: 15 Projects, 19 680 MW 10
HYDROPOWER PROJECTS FOR ELECTRICITY EXPORTATION (1) Nº Plants Capacity (MW) 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 12 y 13 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 TOTAL 19 285 2 Projects HP La Balsa 11 HP Rentema
HYDROPOWER PROJECTS FOR ELECTRICITY EXPORTATION (2) HH.PP. VIZCATAN & CUQUIPAMPA 1550 MW HP Urubamba Nº Plants Capacity (MW) 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 12 y 13 C.H. VIZCATÁN y CUQUIPAMPA 1 550 Huancavelica y Ayacucho 14 C.H. INA 200 1 355 Madre de 12 Dios 15 C.H. URU 320 942 Cusco TOTAL 19 285
HEPP INVESTMENT, GREEN BONDS & BAR ENERGY PRICE Item Deffinitive Concessions Temporal Concessions Greenfield HEPP MW Investment US $ MM TM CO2 MM per year US $ G-B per year 914 1,143 2.6 32 1,600 2,000 4.6 56 19,680 24,600 56.9 683 Total 22,194 27,743 64.2 770 Note.- Considers 0,55 CO 2 TM / MWh and $12/CO 2 TM 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) Marginal Cost Evolution 13
Content I. GENERAL ASPECTS II. HYDROPOWER POTENTIAL III. HYDROPOWER PROJECTS PORTFOLIO IV. PROMOTION INCENTIVES TO DEVELOP HYDROPOWER PROJECTS 14
PROMOTION INCENTIVES TO DEVELOP HEPP [1] GENERAL INCENTIVES 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) Legal and Economical Sustainable economy growth Physical conditions Important flow hydro head sources Permanent Rainy regime Localization between south American neighbors. Ranking 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). 15
PROMOTION INCENTIVES TO DEVELOP HEPP [2] PARTICULAR LEGAL INCENTIVES 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 16
Thanks for your kind attention jaguinaga@minem.gob.pe http://www.minem.gob.pe/ 17
LA BALSA HEPP, 915 MW Installed Capacity. Located on The Marañon River, downstream from the La Balsa Village Map 18
CHADIN HEPP, 2, 600 MW Installed Capacity. Located on The Marañon River, upstream from the intersection with the Llaucano River Map 19
CHAGLLA HEPP, 444 MW Installed Capacity Huallaga River, downstream from Huanuco City Map 20
RENTEMA HEPP, 1 525 MW Installed Capacity. Located on the Marañon River. Amojao Hydrometric Station, downstream from the Rentema Pongo site Map 21
LA GUITARRA (MAN 250) HEPP, 220 MW Installed Capacity. Located on The Mantaro River, downstream Restitución HEPP Map 22
MANTARO 270 HEPP, 286 MW Installed capacity. Located on The Mantaro River, near the Apurimac River and Pariahuanca Village intersection Map 23
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) Map 24
PAQUITZAPANGO (ENE 40) HEPP, 1379 MW Installed Capacity. Located upstream from intersection of Ene River and Perene River Map 25 Next
PAQUITZAPANGO HEPP, 1 379 MW Installed capacity. Located on The Ene River, upstream from its intersection with The Perene River Map 26
TAMBO PUERTO PRADO HEPP, 620 MW Installed capacity. Located downstream the intersection of the Perene River and The Ene River Map 27 Next
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 Map 28
URUBAMBA 320 HEPP, 942 MW Installed capacity. Located on The Urubamba River, downstream from the intersection with The Paucartambo River Map 29
PONGO DE MANSERICHE HEPP, 7 550 MW Installed capacity. Map Field of Influence H.P. Pongo de Manseriche. 30 Next
Map Pongo de Manseriche 31 Next
Map Pongo 32 Next
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan US$/MW.h Marginal Cost Evolution Back 160 140 120 100 80 Active Enegy Bar Price Average Montly Marginal Cost Short Term 60 40 20 0 2004 2005 2006 2007 2008 MONTH 33