Energy security crucial to consider for geothermal in Peru

Energy security crucial to consider for geothermal in Peru Hualca geyser, Peru (source: EDC)
Alexander Richter 23 Sep 2021

Geothermal energy could provide stability in sustainable energy supply and therefore needs to be considered in the overall promotion of renewables in Peru, so EDC.

In a press release shared with ThinkGeoEnergy, EDC Peru, the Peruvian subsidiary of geothermal major Energy Development Corp. (EDC), the company urges the Peruvian state to promote renewable energy technologies taking into account security and continuity of service/ supply.

“The development of wind and solar energy must go hand in hand with that of geothermal energy, since it is a renewable energy that can generate electricity 24/7, 365 days a year, without depending weather conditions, which would provide security and continuity to the electricity service, “said Franklin Acevedo, Country Head at Energy Development Corporation Peru (EDC Peru).

According to existing projections, in a few years the country could be facing an energy crisis, so it is important to carry out energy planning taking into account the objective of including more sources of non-conventional renewable generation, to diversify and strengthen the matrix Peruvian electric. “It has happened to us before, we have the experience that in the face of low supply, costs increase. It would be a shame if this happens, being Peru so rich in resources, and having as an example successful experiences in the world, “added Acevedo.

In this context, he indicated that it is important to have a plan that provides support to wind and solar technologies, whose entry is imminent and at very competitive prices. In this view, geothermal energy -with its high reliability- may be an adequate support for the development of RERs and the Peruvian electrical system.

“Promoting geothermal energy will promote decentralization and diversification of the energy matrix; It will bring stable and uninterrupted base power to the southern regions regardless of weather fluctuations. Furthermore, geothermal energy is a source of heat that will provide added value to the surrounding communities, which can be considered as a cheaper option to provide base energy to the south ”, highlighted the representative of EDC Peru.

“Once accepted in the market, geothermal will have a price between $ 40- $ 50 per MW, making it an economical-based technology, compared to those that exist (available in the south of the country). We need a public policy that allows us to enter the market and then strengthen, grow and, without a doubt, compete freely as all technologies do, ”Acevedo concluded.

Said statements were made during the panel “Challenges and potential of renewable energies in Peru: towards a new Sustainable Energy Matrix”, of the X Renewable Energies Conference, an event where the development of various non-conventional renewable projects in Peru was addressed. the installation of new technologies, among others.

Also participating in the panel were Claudio Helfmann, Enel’s development manager; Gabriel Souza, Engie’s vice president of development, with moderation Roberto Tamayo, former director of Electricity of the Ministry of Energy and Mines, who highlighted the existing challenges for each renewable technology.

“We have to learn from international experience and draw up a plan where energy diversification should be a priority. Likewise, there is a need to open the market and disassociate energy from power, to tender with the distributors with time blocks, and to have the security of the electricity supply ”, concluded Franklin Acevedo, who added that the Peruvian Society of Renewable Energies estimates that there are $ 11,000 million that can go directly to the regions, accompanied by social programs with high impact on the communities.

EDC in Peru

In Peru, EDC has two geothermal concessions under development: Achumani (Arequipa) and Quello Apacheta (Moquegua), both will have an initial installed capacity of 100 MW. It has four pending authorization approval requests from the MEN in the Tacna region. These projects have an initial planned installed power greater than 300 MW, therefore representing a large scale investments.

Source: company release by email