Sustainablearth LATAM Sells 120 MW Renewable Energy Portfolio in Peru to Local Company

Major Renewable Energy Portfolio Changes Hands in Peru

Sustainablearth LATAM, a Canadian-Peruvian company, has announced the successful sale of a 120 MW renewable energy portfolio in Peru to an unnamed local energy company. The portfolio, which includes a mix of solar, wind, and hybrid projects, is poised to significantly contribute to Peru's expanding clean energy landscape. The transaction involves three ready-to-build initiatives, with construction anticipated to commence in the first quarter of 2027.

Portfolio Details and Project Scope

The acquired portfolio, totaling 120 MW (rounded from an actual capacity of 123 MW for market presentation), consists of diverse renewable energy sources. Key components include:

• A 100 MW solar PV project located in northern Peru.
• A 10 MW wind project also situated in northern Peru.
• A hybrid project combining 3 MW of solar PV and 10 MW of wind, located in the central region of Peru.

According to Adolfo Rojas, General Manager of Sustainablearth LATAM, the projects were transferred with 'fully available and suitable land, complete documentation, and advanced pre-feasibility studies,' making them attractive to investment funds focused on renewable infrastructure. All three projects are backed by Power Purchase Agreements (PPAs) with 10-year terms, renewable for an additional 5+5 years. These agreements feature competitive pricing, estimated at approximately USD 40/MWh for solar PV, USD 38/MWh for wind, and an expected USD 35/MWh for the hybrid project by 2028.

Strategic Development and Future Outlook

The buyer, a local Peruvian energy company, is currently in the financial structuring phase, with plans to finalize all logistical and permitting requirements by 2026 to enable the start of construction in early 2027. The 100 MW solar PV plant is slated for integration into the national interconnected system, while the smaller projects will operate under self-generation schemes. Sustainablearth LATAM, founded in late 2016, has historically served as a 'strategic bridge between foreign investors and local developers,' facilitating such transactions.

Peru's Growing Renewable Energy Market

This sale underscores the dynamic growth within Peru's renewable energy sector. The country possesses significant potential for wind, solar, hydro, and geothermal energy. In 2024, the Peruvian renewable energy market generated revenues of $1,455.3 million. The Peruvian government has declared the development of electricity from renewable sources a national interest, establishing a National Renewable Energy Development Plan. Renewable energy contributed 55.4% of Peru's power generation in 2022. Projections indicate that Peru's energy landscape will see over 6 GW of new renewable energy projects by 2025, with a major auction scheduled for March 2025 that will include hybrid projects and Battery Energy Storage Systems (BESS).