Southern Peru's arid region could potentially become the next major player in Latin America's renewable energy sector.
In the sun-drenched region of Arequipa, Peru, the renewable energy sector is experiencing a significant surge. With 28 solar photovoltaic projects approved for Pre-Operational Studies (EPO), the city is poised to become a hub for clean energy production.
One of the most anticipated projects is the Illa Solar Photovoltaic Power Plant, which will have a generation capacity of 472 MWp. This ambitious project, currently underway, is set to surpass the San Martín plant, the current largest in Peru, which began operating in early June and generates 830 GWh of clean energy per year.
The Illa Solar Power Plant is not alone in its ambition. The South African company Phelan Green Energy has proposed a solar and hydrogen plant to the Regional Government of Arequipa, with an investment of around US$2 billion. If approved, this project could produce 75,000 tons of hydrogen per year, a significant contribution to the country's renewable energy goals.
Green hydrogen, produced from renewable energies such as solar and wind, could play an important role in Arequipa and throughout the country, according to COES president César Butrón Fernández. He expects Peru to reach a 34% renewable energy quota in electricity generation in the next ten years.
The district of La Joya, known for its high solar irradiation values, is at the heart of this renewable energy revolution. With a daily solar energy of 7.03 kWh/m2, it is no surprise that the first photovoltaic power plant in Peru was built there in 2012. The mayor of La Joya, Christian Cuadros, has stated that the interest of foreign entrepreneurs in developing photovoltaic plants in his district will have a positive impact.
The population of La Joya, currently estimated to be around 66,000, is predominantly agricultural, with 70% of the population engaged in farming. However, the influx of renewable energy projects is expected to create new employment opportunities, with 20% of the workforce already employed in various companies.
The first green hydrogen plant in Peru is being promoted in the district of La Joya. The US company Summer Energy's Green Hydrogen Production Plant - Summer Horizon project has had its Detailed Environmental Impact Study (EIA-d) approved by the Ministry of Production (PRODUCE).
JA Solar, a Chinese company and a world leader in panel manufacturing, is seeking to be a strategic partner for several solar projects in Peru. Two contracts totaling over 60 million dollars have been signed between JA Solar and Inver Management and Acciona for solar panel delivery by the end of 2026.
Mayor Cuadros is working with the College of Architects of Arequipa to elaborate the urban development plan and zoning for La Joya. His vision is for La Joya to be the district with the most development in southern Peru in the next ten years. Economist Patricio Lewis from REDES indicates that solar photovoltaic projects can meet the energy demand of mining investments such as Tía María and Zafranal.
As the renewable energy sector continues to grow in Arequipa, it is clear that the city's future is bright, both literally and figuratively. With its abundant solar resources and supportive local government, Arequipa is well-positioned to lead Peru's transition to a greener, more sustainable energy future. However, the operators of the "Green Hydrogen Production Plant - Summer Horizon" and "Phelan Green Energy" projects in Arequipa are not publicly disclosed in available sources as of now.
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