Unsubsidised solar PV price hits record low in Peru auction

Sustainnovate

Peru recently awarded 185 megawatts (MW) of new solar photovoltaic (PV) contracts in a renewable energy solicitation, at record-low prices for a nation not offering any tax breaks for such development.

Of the 185 MW of new project capacity, 144 MW relates to a bid from Enel Green Power at $47.98/MWh (megawatt-hours); and 40 MW relates to a bid from Enersur at $48.50/MWh.

Notably, the projects aren’t expected to be built until 2017 — when solar PV prices are expected to be notably lower, hence the lower bids and contracts.

According to the press release from Peru’s Supervisory Agency for Energy and Mines (Osinergmin), the Enel Green Power contract is for the provision of 415 gigawatt-hours (GWh) of electricity a year from the company’s planned Rubí solar PV project at the aforementioned price of $47.98/MWh. The Enersur contract is for the provision of 108 GWh of electricity a year from the planned Intipampa solar PV project at $48.50/MWh.

Delivery of electricity from the projects is currently set to begin by the end of 2018 — if the terms of the contracts are to be met.

Along with the above-mentioned solar energy projects, 3 wind energy projects were awarded contracts following the recent solicitation. Contract prices for these projects ranges from $36.84–37.83/MWh. In addition, a number of hydroelectric and biomass projects were awarded contracts as well.

Note that Enel Green Power was a 2015 Zayed Future Energy Prize finalist and is one of the largest renewable energy developers and operators in the world. It operates renewable energy projects in over 16 countries.

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