Arequipa is the focus of an important project called San Martín, which is being developed in the arid territory of the district of La Joya, Arequipa, with the aim of installing the largest solar plant in Peru. The initiative, led by a Spanish firm, involves an investment of more than US$176 million.
San Martin Project: the largest solar plant in Peru
At the end of December 2023, Solarpack announced the start of work on what will become the largest solar facility in Peru. The San Martin project is expected to create approximately 450 jobs, marking a milestone in both renewable energy generation and boosting economic growth in the region. Located in one of the driest deserts on the planet, the project foresees an installed capacity of nearly 300 MW, which translates into an estimated annual generation of 819 GWh, enough to supply more than 440,000 homes.
This megaproject seeks to reduce the carbon footprint emissions, avoiding the emission of more than 564,000 tons of CO₂ annually, and its start-up is estimated for the second quarter of 2025. Kallpa Generación, a leading company in the Peruvian electricity market, has obtained the San Martín concession through a resolution of the Ministry of Energy and Mines (Minem), thus strengthening its position in the country’s energy production.
Financing for the San Martin project has been secured through an agreement for US$176.6 million, in addition to an IGV loan of up to S/70 million. This financing scheme represents a precedent in Peru, being the first time that a private entity acts as an energy buyer in the country. This financing model, which is based on a power purchase agreement between private entities, has been highlighted for its innovative nature in the Peruvian energy sector.
Undoubtedly, this ambitious project solidifies Peru’s role as a leader in the adoption of renewable energy in Latin America and sets a model for public-private collaboration in the development of sustainable infrastructure, driving not only local economic growth but also promoting a greener energy transition globally.
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Source: larepublica.pe
Photo: shutterstock
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