Peru eyes desert regions for growth in clean energy production
In the sun-drenched region of Arequipa, Peru, a wave of renewable energy projects is taking shape. One of the most significant developments is the announcement by South African company Phelan Green Energy to establish a solar power plant and a hydrogen facility in the Arequipa region.
Phelan Green Energy plans to develop a 5,000-hectare solar plant in Santa Rita de Siguas and a 50-hectare hydrogen plant in Matarani, with an investment of around two billion USD. The solar plant is expected to produce 75,000 tons of green hydrogen annually.
The Peruvian government has set ambitious renewable energy targets. César Butrón Fernández, president of Coes, expects Peru to achieve a 34% participation of renewable energy in electricity generation in the next ten years.
The local government of La Joya, a town in Arequipa, is actively participating in this renewable energy revolution. They are working with the College of Architects of Arequipa to develop an urban development plan and zoning that will define areas for urban growth, agriculture, industrial zones, and renewable energy resource development.
The construction of several other solar plants, including Misti Continuá, Sunny, and San José, is authorized to begin in Arequipa, with a total of 29 solar parks being planned in the region. One of the largest, the Illa solar plant, is currently under construction and is expected to surpass San Martín and become the largest in Peru, with over 742,000 solar panels and a generation capacity of 472 megawatt-peak.
The San Martín solar plant, the largest of its kind in Peru, is operational in La Joya and generates 830 gigawatt-hours of energy per year. The Peruvian President Dina Boluarte stated that the San Martín solar plant would benefit 440,000 families.
The growth in renewable energy projects in Arequipa is driven by the region's high solar radiation indices. José Luis Ticona, a climatologist specialist from Senamhi, stated that La Joya has the highest solar radiation indices in the entire country, with an average daily energy of 7.03 kilowatt-hours per square meter and a relative duration of 75% sunshine.
The green hydrogen produced from renewable energies such as solar and wind could play an important role in Arequipa and throughout the country. The Horizonte de Verano green hydrogen plant, from the American company Verano Energy, aims to produce up to 85,000 tons of green hydrogen per year, with operations expected to start in 2028.
JA Solar, a Chinese company and one of the world's leading manufacturers of photovoltaic panels, is seeking to become a strategic partner in many of these projects in Arequipa. Two contracts have been signed with Inver Management and Acciona Energía Peru totaling over US$60 million, with JA Solar planning to deliver more than 900,000 solar modules with a combined capacity of 650 MW by the end of 2026.
However, not all is smooth sailing. Elias Huamaní, the president of the Cristo Rey Popular Center in La Joya, noted that neither the government nor private companies have sought out the community to talk about the solar energy projects. Marcos Calcina, the community leader in San José, La Joya, mentioned that Acciona Energía Perú was the only company that had met with the community to discuss the environmental impacts and potential benefits of the projects, including job opportunities and improvements to schools, roads, and health centers.
The population of La Joya has grown by approximately 30% in the last five years, with an estimated population of around 66,000 today. The president of the Peruvian Hydrogen Association, Daniel Cámac, stated that "with the new projects, Arequipa should prepare to become an industrial hub for hydrogen production and consumption."
The renewable energy revolution in Arequipa is well underway, promising a brighter, more sustainable future for the region and the country as a whole.
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