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[October thematic report] Renewable energy projects that mark the beginning of the road to energy transition in Peruvian mining

by Anghy Aquino | 15-10-2022 14:36



Floods, storms, droughts, forest fires, heat waves, wet areas becoming wetter, dry areas becoming drier, and more weather phenomena happening all over the world are a clear sign that climate change is happening at a faster than natural rate. 


As is well known, the Earth's climate has changed throughout its history. There were long periods called glaciations during which the earth's temperature decreased and periods when the temperature increased and deglaciations occurred. However, it took thousands to millions of years for this to occur. The 1.1¡ÆC increase in the Earth's average temperature would have taken thousands to millions of years to occur, but the alarming thing is that this increase happened in the last few hundred years.  


The main causes of this acceleration are greenhouse gases, including carbon dioxide, methane, and nitrous oxide, whose production has begun to increase dramatically since the Industrial Revolution, when fossil fuels such as coal began to be used to power steam engines and develop the steel industry. While all this brought great benefits such as development and technological advances, it also brought serious consequences such as the emission of large amounts of CO2, CH4, and NO2 that are accelerating global warming. 


The use of fossil fuels has now become a big problem and must be limited as much as possible, mainly in the sector that produces, according to 2019 data, 76% of greenhouse gas emissions: the energy sector. Therefore, it is of utmost importance to initiate and consolidate our transition towards clean energies such as wind, solar, hydroelectric, biomass, etc. 


In Peru, according to the Ministry of Energy and Mines (Minem), 73.6% of the internal production of primary energy derives from fossil and mineral deposits (coal, oil, and natural gas). To reduce this high figure, some efforts have been made, especially by mining companies that have made a real commitment to reduce their greenhouse gas emissions and have started their path towards energy transition, among them Anglo American and Newmont Corporation.


Punta Lomitas wind project of ENGIE Energía Perú to provide 100% renewable energy to Quellaveco (Anglo American)


punta lomitasCruz, E. (2022). Parque Eólico Punta Lomitas [Image]. Retrieved from https://www.rumbominero.com/peru/construccion-parque-eolico-punta-lomitas-avance-50/


Punta Lomitas is considered the largest renewable energy project in Peru due to its magnitude and investment of more than US$300 million. This project will provide 100% renewable energy, starting in 2023, to Quellaveco, one of the five largest copper deposits in the world, located in the region of Moquegua, Peru, which as a project is being developed by Anglo American, a global mining company, in partnership with Mitsubishi Corporation and currently represents the largest mining investment in Peru with a total investment of US$5.5 billion.


The construction of the Punta Lomitas wind project located in Ica, Peru is in charge of ENGIE Energía Perú and started in September 2021 after Anglo American and ENGIE Energía Perú reached an agreement on April 5, 2021, to convert the total electricity supply (187 MW) of the Quellaveco project to 100% green energy. This wind farm will reach a capacity of 260 MW and have 50 wind turbines with three blades approximately 70 meters long. The wind turbines will be supported by 90-meter-high towers. Punta Lomitas is currently more than 85% complete and will be in commercial operation in the first half of 2023. 


Among the main positive impacts of Punta Lomitas are the following:


*This ambitious megaproject has greatly contributed to the economic reactivation of the Ica region after the pandemic, as it has generated many jobs. 100% of the unskilled labor is locally sourced (the communities of direct impact, in the district of Ocucaje, in Ica). 


*Punta Lomitas will have great positive impacts on the environment, as this megaproject will avoid the emission of more than 250,000 tons of carbon dioxide (CO2) into the atmosphere.


However, as with any large project, Punta Lomitas has also generated some problems for the population, including damage to the roads and highways used by local residents. Two of ENGIE's subcontractors, COSAPI and ABENGOA, began to use the roads used by the neighbors to move machinery and heavy vehicles constantly, which caused damage to the roads and highways. Villagers have also complained about ENGIE's failure to fulfill promises made as part of its social responsibility program, including potable water projects, since the areas surrounding Punta Lomitas have serious water shortages. 


Despite all these problems, it is undeniable that Punta Lomitas is an admirable project that will bring many benefits to the environment. In addition, it represents the effort that Anglo American mining company has been making to achieve its energy transition. 


Punta Lomitas joins all the initiatives that Anglo American is implementing to make all its mines worldwide carbon neutral by 2040. 


Cerro del Águila Hydroelectric Power Station of Kallpa Generación to provide renewable energy to Yanacocha (Newmont Corporation)


cda
Cumbra. (2022). Central Hidroeléctrica Cerro del Águila [Image]. Retrieved from https://www.cumbra.com.pe/proyectos/central-hidroelectrica-cerro-del-aguila/
 

Cerro del Águila Hydroelectric Power Station provides 100% renewable energy to Yanacocha, the largest gold mine in South America and the second largest in the world, located in the Cajamarca region of Peru and operated by Newmont Corporation. 


Cerro del Águila has an installed capacity of 557 MW, which makes it the second hydroelectric power station with the highest installed capacity in Peru. This hydroelectric power station located in the Huancavelica region uses the waters of the Mantaro River to drive its turbines.


Yanacocha received the international I-REC certification in recognition of its 100% renewable energy supply from the Cerro del Águila Hydroelectric Power Station. In this way, the mining company demonstrates its progress in reducing its net carbon emissions. Yanacocha's goal is to reduce its CO2 emissions by 30% by 2030 and to have zero net carbon emissions by 2050. 


Both the Punta Lomitas wind farm and the Cerro del Águila Hydroelectric Power Station are renewable energy projects that demonstrate that Peruvian mining has already begun its path towards energy transition, although there is still a long way to go, as the number of Peruvian mines that continue to use energy that comes from fossil fuels is high.


Like Quellaveco and Yanacocha, I hope that many more Peruvian and global mines that still use fossil fuel energy will begin to use renewable energy throughout their operations. Although renewable energy projects also have some negative impacts or disadvantages, they do not compare at all to those of fossil fuels, and so far they are the best option to fight against the acceleration of climate change. 


The efforts of all companies, both in the mining and non-mining sectors, are of paramount importance to combat the effects of climate change that are affecting us all. 


Reference materials:


Climate change: What is it and why does it matter? ClimateScience. (n.d.). Retrieved October 15, 2022, from https://climatescience.org/advanced-crash-course-climate-change

Emissions by source: What sectors create the most emissions? ClimateScience. (n.d.). Retrieved October 15, 2022, from https://climatescience.org/advanced-emissions-by-source

Energías renovables en el Perú. Noticias - Dirección Regional de Energía y Minas de Piura - Gobierno del Perú. (n.d.). Retrieved October 15, 2022, from https://www.gob.pe/institucion/regionpiura-drem/noticias/626961-energias-renovables-en-el-peru

Empresas mineras fueron galardonadas por el uso de energías renovables. PERÚ ENERGÍA 2022. (2022, June 8). Retrieved October 15, 2022, from https://peruenergia.com.pe/empresas-mineras-fueron-galardonadas-por-uso-de-energias-renovables/

Penot, K. (2022, August 1). Quellaveco, la primera mina en Perú en usar energía 100 % renovable. ENGIE. Retrieved October 15, 2022, from https://engie-energia.pe/notas-de-prensa/quellaveco-primera-mina-del-peru-en-usar-energia-100-renovable-engie

El Proyecto: Así se construye Quellaveco. Anglo American Perú. (n.d.). Retrieved October 15, 2022, from https://peru.angloamerican.com/es-es/quellaveco/el-proyecto

Anglo American suscribe contrato para garantizar 100% energía renovable para las operaciones de Quellaveco. Anglo American Perú. (n.d.). Retrieved October 15, 2022, from https://peru.angloamerican.com/es-es/medios/noticias/2021/2021-04-06

Penot, K. (2022, August 1). Avanza Proyecto Eólico punta lomitas en Ica. ENGIE. Retrieved October 15, 2022, from https://engie-energia.pe/notas-de-prensa/avanza-proyecto-eolico-punta-lomitas-en-ica

Meneses, E. (2022, August 11). Construcción del Parque Eólico Punta Lomitas presenta avance del 85 %. Rumbo Minero. Retrieved October 15, 2022, from https://www.rumbominero.com/portada/construccion-del-parque-eolico-punta-lomitas-presenta-avance-del-85/

Red de Medios Regionales del Perú. (2022, April 17). "Punta Lomitas", el parque eólico más grande del Perú está en Ocucaje, donde falta agua y vías de comunicación. El Búho. Retrieved October 15, 2022, from https://elbuho.pe/2022/04/punta-lomitas-el-parque-eolico-mas-grande-del-peru-se-construye-en-ocucaje-donde-falta-agua-y-vias-de-comunicacion/

Chacon, T. (2022, May 24). Yanacocha recibe certificación internacional por abastecerse de energía 100% renovable. Rumbo Minero. Retrieved October 15, 2022, from https://www.rumbominero.com/peru/noticias/mineria/yanacocha-certificacion-energia-renovable/

Wikimedia Foundation. (2021, February 26). Central Hidroeléctrica Cerro del Águila. Wikipedia. Retrieved October 15, 2022, from https://es.wikipedia.org/wiki/Central_hidroel%C3%A9ctrica_Cerro_del_%C3%81guila

Newmont Corporation - Operations & Projects - Global Presence - South America - Yanacocha – Perú - Yanacocha. (n.d.). Retrieved October 15, 2022, from https://www.newmont.com/operations-and-projects/global-presence/south-america/yanacocha-peru/yanacocha/default.aspx