HVDC Transmission Line
The Project consists of the development of a 1,000 MW 700 km long bipole high-voltage direct current (“HVDC”) transmission line interconnecting the Sistema Eléctrico Nacional electricity system of Chile and the Sistema Eléctrico Interconectado Nacional electricity system of Peru. This project represents an important capital asset and will significantly promote mutual economic development. The HVDC technology will enable a better power flow control and improve reliability and security of electrical energy supply.
Today, Chile generates over half of its power from imported coal and liquified natural gas sources. However, President Sebastian Pinera has set a target for Chile to obtain a 100% renewable energy grid by 2050. While the country has substantial high-quality wind and solar resources, the power system will require firmer renewable resources to accommodate the variable nature of wind and solar.
The Peruvian system is comprised of approximately 50% hydropower and 50% natural gas-fired generation from domestic sources. Unlike Chile, Peru’s energy supply mix is low-emitting, flexible and low cost. This creates a natural price differential between the two markets that support the economic basis for the Pacifico interconnection project. Peru has approximately 200,000 MW of feasible hydropower potential, which represents the lowest cost potential source of firm renewable energy for Chile to compliment Chile’s wind and solar potential.
In November 2016, Peru’s President, Pedro Pablo Kuczynski and Chile’s former President, Michelle Bachelet made a joint statement indicating the interest to interconnect the power systems. Following this statement, Chile, through support from the Inter-American Development Bank has initiated technical, economic, and regulatory studies to support the development of such a regulatory framework.