{"id":60095691,"date":"2025-08-22T17:30:09","date_gmt":"2025-08-22T16:30:09","guid":{"rendered":"https:\/\/dialogue.earth\/?p=60095691"},"modified":"2025-09-03T12:49:31","modified_gmt":"2025-09-03T11:49:31","slug":"is-this-desert-in-southern-peru-latin-americas-next-clean-energy-hub","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/is-this-desert-in-southern-peru-latin-americas-next-clean-energy-hub\/","title":{"rendered":"Is this desert in southern Peru Latin America\u2019s next clean energy hub?"},"content":{"rendered":"\n

In southern Peru, in a desert that stretches along the coast of the Arequipa region, the sun seems to burn relentlessly. Solar radiation is high here, and there are more hours of sunshine per day than anywhere else in the country. In the district of La Joya, the government has for several years been promoting solar power generation and the creation<\/a> of the country\u2019s first green hydrogen plant. It\u2019s a challenge that is slowly beginning to take shape.<\/p>\n\n\n\n

According to the Solar Energy Atlas of Peru<\/a>, produced by the National Meteorology and Hydrology Service of Peru (Senamhi), La Joya has the highest solar radiation values in the whole of Peru, with average daily solar energy reaching 7.03 kilowatt hours per square metre. It also has a relative sunshine duration of 75%, a statistic based on the possible and actual hours of sunshine relative to location and time of year.<\/p>\n\n\n\n

El\u00edas Huaman\u00ed, 46, is the elected president of the Cristo Rey Population Centre, a small settlement of 5,000 in La Joya. He has lived here since he was 16 and tells Dialogue Earth that, in his entire life, he has seen the sky \u201cvery rarely cloudy\u201d, adding: \u201cIt hardly ever rains.\u201d<\/p>\n\n\n\n

\u201cIt is an area with a lot of solar radiation, with more than nine hours of sunshine a day and clear skies almost all year round,\u201d Jos\u00e9 Luis Ticona, a climatology specialist at Senamhi, tells Dialogue Earth.<\/p>\n\n\n\n

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Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

Huaman\u00ed is not surprised when he sees from afar how the desert is filling up with solar panels, but he says no one from the companies or the government has approached the community to talk about these developments.<\/p>\n\n\n\n

In another town in La Joya, called San Jos\u00e9, community leader Marcos Calcina knows only slightly more about proposed solar projects. He and his association had a public hearing with Acciona Energ\u00eda Per\u00fa<\/a>, one of the companies that will set up in the area.<\/p>\n\n\n\n

\u201cThey explained the details of the environmental impact to us. It is the only company that has met with us. They say there are more companies, but we don\u2019t know anything about the rest,\u201d Calcina says. He adds that Acciona told communities the project will be located outside of the town centre, will generate jobs for local people, and that Acciona will also carry out works to improve local services such as schools, roads and health centres.<\/p>\n\n\n\n

Notable growth in solar projects<\/h2>\n\n\n\n

The San Mart\u00edn solar power plant became the largest in Peru when it began operating in La Joya in early June. The project, by Zelestra<\/a>, a global renewable energy developer headquartered in Spain, features 450,000 solar panels that will reportedly generate 830 gigawatt hours of clean energy each year. Attending its inauguration<\/a> on 17 July, Peru\u2019s president Dina Boluarte said the plant will benefit 440,000 families.<\/p>\n\n\n\n

However, the first significant solar projects in the country date back more than a decade. In 2012, Spanish company T-Solar built Peru\u2019s first utility-scale photovoltaic power plant in La Joya, installing 55,704 solar panels to generate 22 megawatts of power.<\/p>\n\n\n\n

Now, construction is underway on the Illa solar power plant in Arequipa, which will leapfrog the San Mart\u00edn plant to become the largest in Peru. Ernesto Oliver, spokesperson for the Enhol Group<\/a>, tells Dialogue Earth that the Spanish company will install more than 742,000 solar panels with a generation capacity of 472 megawatt-peak. This is a unit of measurement unique to solar energy, measuring the cumulative peak capacity of all modules in a solar power plant.<\/p>\n\n\n\n

\u201cWe are in the middle of the construction phase. The entire plant is expected to be operational by the end of 2026. Arequipa has a high energy demand, particularly from the mining sector,\u201d says Oliver.<\/p>\n\n\n\n

\"A<\/div>
The San Mart\u00edn solar power plant began operating in June and is the largest of its kind in Peru. Managed by the Spanish company Zelestra, San Mart\u00edn has 450,000 solar panels and is expected to generate 830 gigawatt hours of energy annually (Image: Presidencia de Per\u00fa<\/a> \/ Flickr<\/a>, CC BY NC SA<\/a>)<\/div><\/div><\/div><\/div>\n\n\n\n

There are several more projects with authorisation to begin construction in Arequipa. These include the Misti Contin\u00faa solar plant (507,690 panels), the Sunny plant (612,000 panels) and the San Jos\u00e9 plant (312,648 panels). There are a total of 29 solar farms planned<\/a> for the region, according to the Supervisory Agency for Investment in Energy and Mining (Osinergmin).<\/p>\n\n\n\n

To meet this high demand, the Chinese company JA Solar<\/a>, one of the world’s leading panel manufacturers, is seeking to become a strategic partner in many of these projects. As confirmed to Dialogue Earth by Cristhian Romero, JA Solar\u2019s sales manager in Peru, two contracts (with the companies Inver Management and Acciona Energ\u00eda Per\u00fa) have been signed worth more than USD 60 million, and by the end of 2026 they will reportedly deliver more than 900,000 modules exceeding 650 megawatts.<\/p>\n\n\n\n

\u201cThis investment is a milestone for the company in Latin America. The Peruvian market is at a key stage in accelerating the energy transition, and we want to be an active part of that process. Arequipa represents a fundamental axis within our strategy,\u201d says Romero.<\/p>\n\n\n\n

Other opportunities<\/h2>\n\n\n\n

\u201cIn the last five years, La Joya has grown by 30% in terms of housing. Seventy percent of the population is engaged in agriculture, 20% works in various companies, and the rest are self-employed,\u201d La Joya’s mayor Christian Cuadros tells Dialogue Earth. The 2017 census reported the district\u2019s population as 35,943 but Cuadros estimates it is now around 66,000.<\/p>\n\n\n\n

In 10 years\u2019 time, La Joya will be the most developed district in southern Peru<\/blockquote>Christian Cuadros, Mayor of La Joya<\/cite><\/div><\/div>\n\n\n\n

He believes the interest of foreign entrepreneurs in developing photovoltaic plants in his district will have a positive impact. The local government is working with the Arequipa College of Architects to develop an urban development and zoning plan to define which areas will be for urban growth, agriculture and industrial zones, and where renewable energy resources will be developed.<\/p>\n\n\n\n

\u201cIn 10 years\u2019 time, La Joya will be the most developed district in southern Peru,\u201d Cuadros claims.<\/p>\n\n\n\n

Patricio Lewis, an economist with the Network for Development Studies (Redes), says photovoltaic projects will be able to meet the energy demands of the many upcoming mining investments in Arequipa, such as T\u00eda Mar\u00eda<\/a>, a USD 1.8 billion copper mine, and Zafranal<\/a>, a USD 1.9 billion copper and gold mine.<\/p>\n\n\n\n

Hydrogen on the rise<\/h2>\n\n\n\n

Peru\u2019s electricity comes from various sources. In 2024, production consisted of 51% hydroelectric, 40% thermal-natural gas, and only 9% from renewable energies (sun, wind, and biomass), according to data<\/a> from COES, Peru\u2019s energy operating company.<\/p>\n\n\n\n

C\u00e9sar Butr\u00f3n Fern\u00e1ndez, president of COES, tells Dialogue Earth he expects the renewable energy share of Peru’s total electricity generation to reach 34% within the next 10 years. To achieve this, he says green hydrogen<\/a>, produced using renewable energies such as solar and wind, could play an important role in Arequipa and the country as a whole.<\/p>\n\n\n\n

What is green hydrogen?<\/strong><\/span>
\n

Demand for hydrogen is increasing because it does not produce greenhouse gases when burned.

\u26aa\ufe0f However, fossil fuels are typically used to produce the hydrogen in the first place. This is known as \u201cgrey\u201d hydrogen.

\ud83d\udd35 \u201cBlue\u201d hydrogen is also produced using fossil fuels but alongside carbon capture and storage technology, which stops the resulting greenhouse gas emissions from reaching the atmosphere.

\ud83d\udfe2 Hydrogen can only be classified as \u201cgreen\u201d if it was produced entirely using renewable energy.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

In this regard, there are two proposals in Arequipa that have generated considerable hopes in the sector. The first<\/a> is the Horizonte de Verano green hydrogen project by the US company Verano Energy<\/a>, which has had an environmental impact study<\/a> approved by the Ministry of Production.<\/p>\n\n\n\n

According to the document, this project, which aims to produce up to 85,000 tonnes of green hydrogen per year, would begin construction this year and start operating in 2028.<\/p>\n\n\n\n

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Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

The second project<\/a> is from the South African company Phelan Green Energy, which has submitted a proposal to the Regional Government of Arequipa (GRA) for both parties to move forward with the project. Phelan\u2019s country manager, Jean Luois Gelot, says the GRA has made 5,000 hectares available for the project in Santa Rita de Siguas district for the solar plant and 50 hectares in the coastal city of Matarani for the hydrogen plant.<\/p>\n\n\n\n

\u201cWe will enter into a public-private partnership as an active project. The state provides the land and receives compensation. The GRA is not investing a single penny and is not liable if the project fails,\u201d Gelot tells Dialogue Earth. \u201cWe have already presented the financial model, which will undergo a technical and economic evaluation by the regional government and then by the regional council.\u201d He confirms the investment will be around USD 2 billion to produce 75,000 tonnes of hydrogen per year.<\/p>\n\n\n\n

In view of all these investments, the president of the Peruvian Hydrogen Association (H2 Peru<\/a>), Daniel C\u00e1mac, tells Dialogue Earth that \u201cwith the new projects, Arequipa must be prepared to become an industrial hub for hydrogen production and consumption.\u201d Otherwise, he concludes, all the ambitions to turn the region into an international destination for clean energy production \u2013 as business leaders have repeated<\/a> regularly<\/a> \u2013 could remain mere dreams.<\/p>\n","protected":false},"excerpt":{"rendered":"

Several companies are working to turn La Joya, one of the most sun-soaked areas of the country, into a centre for solar power and green hydrogen development<\/p>\n","protected":false},"author":50000827,"featured_media":60095705,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[757],"tags":[17073,18132,593],"hashtags":[],"country":[50002601],"class_list":["post-60095691","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-energy-transition","tag-hydrogen","tag-solar","country-peru"],"acf":[],"yoast_head":"\nIs this desert in southern Peru Latin America\u2019s next clean energy hub? | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Several companies are working to turn La Joya, one of the most sun-soaked areas of the country, into a centre for solar power and green hydrogen development\" \/>\n<meta name=\"robots\" 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