With a temporary hydroelectric concession permit allowing them to study the feasibility of building a hydroelectric plant using the Pelagatos and Plata rivers, Hidropesac studied and analyzed several options ranging from the installation of 19MW to 28MW hydro power plants.
The current studies show that all the options combining the hydrological resources from the two rivers are both technically feasible and financially profitable. According to a preliminary report, the installation of a 28MW hydro power plant is the best option with a power generation potential of between 113 to 141GWh per year and the highest internal rate of return.
This major project would give Malaga complete autonomy in terms of power generation, would sustain its planned production growth, decrease its production costs permanently and eventually generate important value.
The complete feasibility study detailing the economic parameters and financial requirements should be finalized in later this year.
Hidropesac will then carry out the environmental and archeological studies required by the Peruvian authorities, in order to obtain the permanent hydroelectrical concession. Agreements with regional governmental bodies and local communities will be concluded with the objective to start construction in 2011.
