Grenergy Renovables has been awarded 2 wind farms out of 13 projects selected through the fourth auction process carried out by the Peruvian government to generate electricity from renewable sources. These wind farms have a capacity of 18 MW each and are located in the department of Cajamarca.
This auction, in which a total of 111 projects were presented across all technologies, has been the most competitive auction in Latin America to date with the lowest sales price in the history of the continent for solar and wind projects. This result confirms the continued drastic fall in energy prices that these technologies offer, well below the price of conventional energy sources such as fossil fuels.
In the case of solar projects, Enel Green Power SpA and GDF Suez have been the only winning companies, presenting historical sales prices of $47.98 and $46.98 per MWh respectively. As regards wind projects, Enel and Grenergy Renovables were similarly the only two bidders to win the capacity offered; Grenergy won 2 wind farms of 18 MW with sales prices of $36.84 and $ 37.79 per MWh, just below Enel, which presented a price of $37.83. The projects from Grenergy benefit from an excellent wind resource of over 5,000 equivalent hours, as well as the right to a 20-year US Dollar denominated PPA indexed to CPI which will be expandable if, as expected, the projects are connected in 2017.