Israel Corporation to Build $1 Billion Power Plant in Peru

YERUSHALAYIM -

The Israel Corporation will be building a $1 billion power plant in Peru after winning a government tender, The Jerusalem Post reported.

IC Power, the electricity arm of the Israel Corporation, plans to construct and operate a 590-megawatt backup power plant in Peru, part of a Peruvian national development program.

The company’s South American subsidiary, Inkia Energy, will build a dual natural gas turbine and diesel capable power plant in the city of Mollendo near Peru’s southern tip — a project that should be complete by mid-2016.

The station will initially generate electricity from diesel, but will switch to gas, once the pipelines are completed, over the next few years.

Current power consumption in Peru is about 5,500 megawatts, and the plant will supply  a backup equivalent to over 10 percent of the country’s electricity usage, IC Power said.

Once complete, the output will be comparable to that of
the 870-megawatt Kallpa Generacion SA facility in the central coastal city of Chilca, the company said.

On Sunday, IC Power also announced that Kallpa Generacion SA — of which IC Power’s Inkia Energy is a 75% stakeholder — will be purchasing an additional 193-megawatt gas facility located within its main site’s vicinity in Chilca.

In addition to its participating in the forthcoming Mollendo site and the Chilca facilities, Inkia Energy holds a 75% stake in the Cerro Del Aguila SA company developing a 520-megawatt Peruvian hydropower plant. The Israeli subsidiary also holds a 21.2% stake in the Edegel SAA company, which operates 1,668 megawatts worth of hydropower and natural gas plants in central Peru.