How is ENGIE reaching 25 years of operation in the Peruvian market?
We have a long-term commitment to Peru. From our first operation to date we have invested around US$2.3 billion in our activities. We currently have eight power generation plants distributed in different regions of the country. These operations total 2,496 MW of installed capacity, which represents 19% of the capacity of the country's National Interconnected Electrical System (SEIN).
Today ENGIE Energía Perú is one of the largest electricity generators in the country. We are recognized as the company with the best corporate reputation in the energy sector and among the 50 in Peru, according to the MERCO 2021 Ranking. These results can be explained by the excellence of our teams, who strive and innovate every day to provide a quality service, always respecting the ethical principles that the ENGIE Group strictly applies in all its business lines.
What does this energy transition consist of?
In 2017, we started a determined process of decarbonization, and with this, the wave of growth towards low-CO2 and renewable energies. That year, the Ilo1 thermoelectric plant (diesel) was taken out of commercial operation; and the following year, our first plant with renewable energy, the Intipampa solar plant, located in Moquegua, began operating.
In 2019, we announced the retirement from commercial operation (by December 2022) of the Ilo 21 coal-fired power plant; and, the following year, the development of the Punta Lomitas wind power plant, located in Ica. The latter is currently under construction and will become the largest wind farm in Peru, with a capacity of 260 MW and an investment of US$300 million.
The objective is that all these megawatts withdrawn from the system will be progressively replaced by renewable energies, both from the Punta Lomitas wind power plant and from a portfolio of new projects (solar and wind) for up to 1,100 MW, which are currently in different stages of development.
What is the Punta Lomitas project?
The Punta Lomitas project is a wind power plant that we have been building since September 2021 on a total area of 3,266 hectares in the district of Ocucaje (Ica). It will have 50 wind turbines of approximately 5 MW each. In addition, it will have two electrical substations and 60 kilometers of transmission lines that will connect the plant to the national electrical system. It is estimated that Punta Lomitas will avoid around 230,000 tons of greenhouse gases per year.
Punta Lomitas became a reality thanks to a supply contract between AngloAmerican and ENGIE Energía Perú to supply non-conventional renewable energy to the Quellaveco mining project for 100% of its operations.
What are the objectives set for the short and medium term, with a view to the next 25 years?
ENGIE, as a global leader in energy, has set out to accelerate the transition to a carbon neutral economy with a focus on renewable energy and efficient energy infrastructure, in order to have a more sustainable world. We seek to ensure that economic performance has a positive impact on people and the planet. In connection with that, the ENGIE Group has taken the decision to prioritize and concentrate efforts on the development of renewable energy and large energy infrastructure projects.
ENGIE's global ambition is to become net zero carbon by 2045, covering all emissions along its value chain. This involves developing renewable energy projects that progressively replace traditional energy sources. Of course, all of this is accompanied by strict compliance with our occupational health and safety policies, respect for the environment and collaborative work with neighboring communities.
How does this impact the Peruvian operation?
At ENGIE Energía Perú we seek to develop greater capacity in renewable energies and, at the same time, guarantee an energy transition that maintains high standards of reliability in electricity generation; and help our clients achieve their decarbonization goals.
In this sense, our objective in the medium and long term is to lead the country's energy transition through: (i) our value proposition, with which we seek to accompany our clients on their own path towards carbon neutrality; (ii) reducing the carbon intensity of our activities with a focus on renewable projects; (iii) betting on digitalization; (iv) implementing climate actions.
What are the challenges of the energy transition?
Since the last few years, we have focused on developing a portfolio of projects in response to our business strategy: acting to accelerate the transition to a carbon-neutral economy. In turn, this helps our customers to consume energy efficiently and sustainably. In this regard, we now have a portfolio of up to 1,100 MW of renewable energy.
Another challenge is for this transition to be fair, i.e. to strike the right balance between the climate imperative to decarbonize on the one hand and the needs of workers and communities on the other. ENGIE Energía Perú is in constant dialogue with its stakeholders, seeking to consolidate its relationships and co-constructing with them in the long term.
What is the role of gas in this path?
This supply allows us to have a reliable energy transition due to the variable nature of renewables. With natural gas we seek to serve the energy market under the three objectives: sustainable, economically accessible to users and reliable. Worldwide, ENGIE is convinced that gas is a fundamental lever for the energy transition and seeks to reinforce its role as a pioneer in renewable gases, such as green hydrogen.