Thursday, June 1, 2023

Luz del Sur will enter solar energy generation with the purchase of Arc Sojitz

In this sense, the agreement was signed by both teams on Tuesday. But for the material operation, there are still pending steps, as According to the authorities, Mario Gonzales, general manager of southern lightin dialogue with Management.

Two solar power plants

Majes Arcus and Repartición Arcus are pioneering solar energy generation plants in the region. Created in 2012, they have among them to a production capacity of about 40 megawatts. To date, they have power purchase contracts at a fixed price for the next 10 years, provided by the Ministry of Energy and Mines (MINEM).

READ ALSO: Luz del Sur, plans for innovation and more electricity generation

After concluding these contracts, the company will be able to use this energy for other purposes. It should be known that produced by industry * southern light it is sent only to the free market (companies and large consumers); while providing a controlled market, it buys energy from parties through third parties. To date, the power generated by Luz del Sur represents less than 10% of the total sales capacity.

“For our company, these will be the first solar energy generation plants (and also non-conventional renewable energy) that will become part of our assets. The production of these two plants is small, but it is important for us that it is aligned with the sustainability strategies we have developed over time,” he commented. Gonzales.

To these things, he signified the distribution company will evaluate whether it is possible to increase both photovoltaic power generation plants. Further, it is possible that later Make new acquisitions or start renewable energy projects from scratch. “It is a process that progresses step by step and pursues the goal of having enough energy to serve our customers,” added the executive.

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As for himself, Javier Matos, director of Nexta Consultinga company that advises companies in the energy sector of the region, shows that, due to the large difference in costs, non-conventional renewable energy has become the rule in the development of new power generation plants. The construction cost of a hydroelectric plant is much higher (US$2.5 million per megawatt) than a non-conventional power plant (US$1 million per megawatt). However, these often have commercial problems because, due to regulatory issues, there is no official recognition of their potential.

But in Luz del Sur he noticed; It is convenient to buy these solar power plants since the company already has conventional electricity generation capacity, which would allow them to support the contracts they could enter into with their customers. In addition, he stated that “at least for the next 10 years, these plants have already paid off the commercial factor, since the energy sales of the contracts with Minem are already subject”. This has the added advantage that these contracts were signed a decade ago at fixed prices much higher than today’s currency.

Nation World News Desk
Nation World News Desk
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