Southern Peru's desert emerges as a potential hotspot for renewable energy in Latin America?

In the heart of southern Peru, the district of La Joya is poised for significant development and transformation. With a current population of around 66,000, 70% of whom are dedicated to agriculture, the district is set to become a hub for renewable energy, particularly solar power and green hydrogen production.

La Joya holds a unique advantage, boasting the highest solar irradiation values in Peru. With a daily solar energy of 7.03 kWh/m2, it offers an ideal location for solar photovoltaic projects. In fact, the first photovoltaic power plant in Peru was built in La Joya back in 2012, paving the way for renewable energy in the country.

The district is now at the forefront of a new development, with the promotion of the first green hydrogen plant in Peru. The US-American company Verano Energy, in collaboration with potential local Peruvian partners, is planning the "Green Hydrogen Production Plant - Summer Horizon" in Arequipa. The project has recently had its Detailed Environmental Impact Study (EIA-d) approved by the Ministry of Production (PRODUCE).

The Spanish company Enhol Group is another major player in Arequipa's renewable energy sector. They plan to install over 742,000 solar panels with a generation capacity of 472 MWp in the region. This ambitious project will surpass the San Martín solar power plant, currently the largest in Peru, which started operating in early June.

The Arequipa region, known for its high demand for energy, particularly from the mining sector, stands to benefit significantly from these developments. Solar photovoltaic projects, such as those proposed by the South African company Phelan Green Energy for a solar plant in Santa Rita de Siguas and a hydrogen plant in Matarani, could meet the energy demands of major mining investments like Tía María and Zafranal.

The Peruvian market is at a key stage to accelerate the energy transition, according to JA Solar's Sales Manager. Green hydrogen, produced from renewable energies such as solar and wind, could play an important role in Arequipa and throughout the country.

The mayor of La Joya, Christian Cuadros, is working closely with the College of Architects of Arequipa to elaborate the urban development plan and zoning for La Joya, ensuring that the district's growth aligns with its renewable energy ambitions.

César Butrón Fernández, president of COES, expects Peru to reach a 34% renewable energy quota in electricity generation in the next ten years. With the developments in La Joya and Arequipa, it seems that this ambitious target is within reach.

The Chinese company JA Solar has signed contracts worth over 60 million dollars for the delivery of solar panels in Peru, further solidifying the country's commitment to renewable energy. As La Joya and Arequipa lead the way in Peru's energy transition, it's clear that the future of renewable energy in the country is bright.