Can you give a brief introduction to Kallpa?

Kallpa is a major player in the electricity generation sector in Peru. There are three companies under the Kallpa corporate umbrella: Kallpa, Orazul, and Kondu. At Kallpa, we manage two natural gas combined cycle plants located south of Lima, with capacities of 896 megawatts (MW) and 322 MW respectively. Additionally, we own the Cerro del Águila hydroelectric power plant in Huancavelica, the largest private hydroelectric facility in Peru, with an installed capacity of nearly 600 MW. Orazul, our second company, operates two significant hydroelectric plants: Carhuaquero with 110 MW in Cajamarca and Cañón del Pato with 266 MW in Ancash. Kondu is our most recent company, established two years ago to address the SMEs market in the electricity sector. Through this company, we also develop and provide energy solutions tailored to each customer's needs helping them to be more competitive and to reach their sustainable development goals. 

How important is mining for Kallpa?

Mining constitutes one of our main customer segments due to its high energy demand. The opening of new mines implies significant investments in electrical infrastructure. Additionally, the modern mining industry has ambitious decarbonization goals, prompting us to offer a clean and reliable energy supply, as well as to optimize mines’ energy consumption. We work with large mining clients such as Southern Copper Corporation, Antapaccay (Glencore), Goldfields, Chinalco, Cerro Verde (Freeport-McMoRan), Yanacocha (Newmont),  Miski Mayo and Alpayana, among others.

Peru has an optimal combination of natural resources and technologies to meet the electrical demands of intensive industries like mining. With conventional renewable energy sources such as hydroelectric, and unconventional ones like wind and solar, distributed throughout the country, backed by the security and efficiency of natural gas, an ideal energy mix is created. Our goal is to maintain this balance to ensure a reliable, competitive and sustainable energy supply.

What is the potential for the development of green hydrogen in Peru?

Peru has very favorable conditions for the development of green hydrogen. Wind energy is well developed in the northern and central parts of the country, while the south (Arequipa) has some of the highest solar radiation in the world. This, combined with extensive mining activity, could position Peru as a center of excellence in this field.

How is the energy transition within Peruvian mines progressing?

In the Peruvian mining sector, we are observing a trend towards energy solutions tailored to each client's specific needs. Initially, we provided green energy certificates (I-REC, for example) certifying that we have generated electricity from renewable sources equivalent to customers' electricity demand. Unlike many other countries, the main challenge in Peru to reduce emissions does not lie in the power generation sector, but in other sectors such as transportation.

What projects does Kallpa have in the pipeline?

We have a very diversified portfolio, including wind, solar and hydroelectric projects, alongside a power plant refurbishing initiative. Currently, we are working on a solar project in Arequipa called Sunny (204 MW), which already has all the necessary permits and is ready to build. We have also entered into an off-take agreement with Solarpack, which enables them to build a 250 MW solar power plant called San Martín.

Additionally, we have wind projects in different stages of development, such as Vientos in Ica, Norteño, and Cherrepe in Chiclayo, in which we are processing the permits, but we already have the Preoperability Study approved by the COES. 

What challenges do mining companies face when optimizing their energy consumption?

The main challenge is to find a balance between a clean system that uses renewable energies and the security of supply. 

What are Kallpa’s goals for the coming months?

We will continue to operate and maintain our existing assets. Additionally, we will face competitive energy renegotiation processes with our customers and hope to maintain our current contract share. The duration of contracts depends on the strategy of each client, but the mining sector generally prefers long-term contracts due to the importance of electricity costs in their operations.

Finally, we are focused on expanding our energy solutions business with Kondu and plan to be ready to implement our personalized energy solutions offering, which will range from distributed generation to solving problems related to deficient transmission infrastructure, which often hinders industry expansion.