electricidad2a
Electric Power
  • Practice
  • Experience

We give legal advice on transactional and regulatory matters to investors, operators, major consumers, regulating agencies and government institutions and corporations.  This includes advice on project development and financing, acquisitions, investments, regulated and non-regulated business, rates and price regulation, interconnection and access to infrastructure networks,  operating licenses, regulatory proposals, tax stability agreements, tax benefits, and disputes, among other matters.

As part of this legal advice, we help our clients obtain concessions, authorization, permits, licenses and authorization to carry out an economic activity in the national electric power market and to execute investment projects, sign/renegotiate electric power generation, transmission and distribution concession contracts, obtain/transfer electric power infrastructure rights through public and private competitive bidding and by signing/renegotiating the resulting contracts (including corporate due diligence), and sign/renegotiate construction and related service contracts.

We likewise offer legal advice on commercial transactions in the regulated and unregulated energy infrastructure (electric power and gas) commodities and services market, such as: the physical supply of electric power and energy, self-generation, co-generation, energy futures contracts, firm energy and firm power purchases (trading rights), natural gas supply, electric power transmission service contracts and natural gas transportation service contracts, as well as natural gas distribution contracts.

We furthermore advise our clients on the drafting of regulatory proposals in order to make the national electric power market more dynamic and efficient and encourage investment in it, the signing /renegotiation of investment and tax stability agreements, and obtaining tax benefits (such as, for example, obtaining general sales tax refunds in advance).

Our practice extends, as well, to helping our clients deal with any disputes that could arise between them and other private companies or government institutions or corporations with regard to different issues and that require settlement through executive and /or legal action and /or national or international arbitration, as appropriate; this includes our participation in both the preparation of notarized letters,  complaints, replies to complaints, challenges and precautionary measures and in any hearings that could be held in each case.

the issues mentioned above include, for example, differences over the interpretation and/or application of contract stipulations, differences over the interpretation and/or application of regulatory provisions, differences over tax regulation, differences over electric power interconnections and access to power systems and differences over the valuation of transfers, among other matters.

To conclude, we help our clients prepare their investment projects within a private investment regime (either as private investment projects or as investment projects of public-private partnerships) and to structure the pertinent financing mechanisms.

Power Purchase Agreements

  • Supply of 225 MW by the Cajamarquilla Refinery to Votorantim Metais.
  • Supply of 180 MW by the Toromocho project to Minera Chinalco Perú.
  • Supply of 140 MW to Sociedad Minera Cerro Verde.
  • Supply of 140 MW to Anglo American Quellaveco.
  • Supply of 110 MW to Sociedad Eléctrica del Sur Oeste – SEAL.
  • Supply of 70 MW to Cementos Lima.
  • Supply of 60 MW to Minera Barrick Misquilchica.
  • Supply of 38 MW to Cementos Norte Pacasmayo.
  • Supply of 31 MW to Distriluz.
  • Supply of 30 MW to Cemento Andino.
  • Supply of 20 MW to Edelnor.
  • Supply of 15 MW to Compañía Minera Ares.
  • Supply of 12 MW to Panamerican Silver.
  • Participation in long-term competitive bidding organized by  Distriluz and award by Fenix Power of a 10-year agreement to supply 30 MW.
  • Participation in long-term competitive bidding organized by Luz del Sur and award by Fenix Power of a 10-year agreement to supply 310 MW.
  • Agreement between Compañía Eléctrica el Platanal-CELEPSA and Duke Egenor for the purchase of 350 GWh a year of Firm Power over the period 2010-11.
  • Agreement between Compañía Eléctrica el Platanal-CELEPSA and  Generación Eléctrica Atocongo for the purchase of 200 GWh a year of Firm Power over the period 2010-12.
  • Agreement between Compañía Eléctrica el Platanal-CELEPSA and Fenix Power for the purchase of 500 GWh a year of electric off-peak power futures for the period 2013- 2018.
  • Electric power import agreements between ElectroNoroeste and CELEC (Ecuador) for up to 60 MW.

Electric Power Transmission Agreements

  • Services agreement for Transmission of 160 MW of 220 kV Electric Power for Volcan Compañía Minera S.A.A..
  • Services Agreement for Transmission of 300 MW of 220 kV Electric Power for Compañía Eléctrica el Platanal – CELEPSA.
  • Services Agreement for Transmission of 280 MW of 220 kV Electric Power for Minera Chinalco Perú S.A.’s Toromocho Mining Project.
  • Services Agreement for Transmission of 300 MW of 220 kV Electric Power for Anglo American Quellaveco S.A.’s Quellaveco Mining Project.
  • Services Agreement for Transmission of 90 MW of 220/138 kV Electric Power for Vale Do Rio Doce’s Bayóvar Phosphates Project.
  • Services Agreement for Transmission of 200 MW of 220 kV electric power for Duke Energy Egenor´s Las Flores thermoelectric power plant.
  • Services Agreement for Transmission of 600 MW of 500 kV Electric Power for Fenix Power Peru.
  • Services Agreement for Transmission of 300 MW of 220 kV Electric Power for Compañía Eléctrica El Platanal – CELEPSA.

BOOT (Build, Own, Operate & Transfer)Transmission Agreements

  • Chilca-Marcona-Caraveli 500 kV Power Transmission Concession for Abengoa Transmisión Sur.
  • Zapallal-Trujillo 500 kV Power Transmission Concession for Consorcio Transmantaro.
  • Mantaro-Montalvo 500 kV Power Transmission Concession for Abengoa Transmisión Sur.
  • Chilca-La Planicie-Zapallal 500/220 kV Power Transmission Concession for Consorcio Transmantaro.
  • Trujillo – La Niña 500 kV Power Transmission Concession for Consorcio Transmantaro.
  • Machupicchu-Abancay-Cotaruse 220 kV Power Transmission Concession for Consorcio Transmantaro.
  • Ica-Independencia 220 kV Power Transmission Concession for Red de energía del Perú-REP.
  • Paragsha-Oroya Nueva 220 kV Power Transmission Concession for Consorcio Transmantaro.
  • Piura-Talara 220 kV Power Transmission Concession for Red de Energía del Perú-REP.

Investment Projects

  • El Platanal 220 MW hydroelectric power plant, the largest private hydroelectric power plant to be built in Peru in the last 40 years.
  • SDF Energía 35 MW cogeneration plant, the first cogeneration plant to be built in Lima to run on Camisea natural gas.
  • El Platanal II 50 MW hydroelectric generating plant and irrigation project for 30,000 hectares of uncultivated land, the largest private irrigation initiative in Peru, associated with a 200,000 tons-a-year bioethanol production project.
  • SDE Piura 35 MW open-cycle thermoelectric power plant, the first integrated greenfield natural gas-fired electric power project in northern Peru.
  • Fenix Power Peru 540 MW themoelectric power plant, Peru’s largest combined cycle duel-fuel (natural gas and diesel fuel) thermoelectric power plant.
  • Chaglla 360 MW hydroelectric generating project, a large-scale hydroenergy generating project under execution.
  • SN Power Cheves 168 MW Hydroelectric Power Plant under execution.
  • Yanapampa 9 MW two-phase mini hydroelectric power plant.
  • Nuevo Imperial 4.2 MW Hydroelectric Power Plant, a mini hydroelectric power plant.
  • 80 MW thermosolar electric power generation project in southern Peru.
  • 18 MW biomass cogeneration Plant in northern Peru.
  • Advisory assistance to Compañía Minera Ares and Minera Suyamarca (affiliated with the Hochschild Mining Plc group) in organizing private competitive bidding for the construction, operation and maintenance of a transmission line for the Supplementary System.
  • Marcona 32 MW eolic park.
  • Soleol, development of 250 MW of eolic generation projects on the country’s northern, central and mid-southern coasts.

Rate Regulation

  • Legal counseling of many of the large Peruvian electric power distribution companies on matters relating to the regulatory process for approval of electric power distribution rates and investment plans for compulsory supplementary transmission, among others.
  • Legal counseling of the most important electric power transmission companies, a sizeable number of power distribution and generation companies and a group of the largest power consumers with regard to the regulatory process for approval of power transmission rates.
  • Legal counseling of all of the large Peruvian power generation companies on matters concerning the proposed committee of generators with regard to the regulatory process for approval of energy and capacity rates.
  • Legal counseling of different distribution companies on matters concerning reimbursable taxes.

Interconnections

  • Implementation of the operation and interconnection of the Tayabamba-Callahuanca 138 kV, 90 MW transmission line.
  • Interconnection on the 138 kV network of Conenhua (Oropampa mine) with the Red de Energía del Perú-REP system at the Callalli Substation.
  • Interconnection on the 220 kV network of the Yucán Hydroelectric power plant with the ISA Perú System at the new Carhuamayo substation,
  • International interconnection on the 220 kV network of Ecuador with the Red de Energía del Perú – REP at Zumilla.
  • Interconnection of the San Gabán Hydroelectric Power Plant with ETESUR at the Azángaro substation on the 138 kV  network.
  • Energy expansion and transfer from the Minera Condestable Connection Point.
  • El Platanal 220 MW Hydroelectric power plant, the largest hydroelectric power plant to be developed and built by the private sector in Peru in the last 40 years.
  • Legal counseling of some of the largest electric power consumers on matters concerning access to and interconnection with the electric power network.
  • Legal counseling of many of the largest electric power generation companies on matters concerning Access to and interconnection with the electric power network.
  • Tayabamba – Callahuanca Interconnection Agreement on the 138 kV network
  • Callali-Orcopampa Interconnection agreement on the 138 kV network
  • Yuncan Hydroelectric Power Plant 130MW Interconnection Agreement on the 220 kV network
  • Ampliación Sociedad Minera Cerro Verde 400 MW Interconnection Agreement on the 500 kV network.
  • Xstrata las Bambas Interconnection Agreement on the 220 kV network.
  • Ampliación Xstrata Tintaya Interconnection Agreement on the 220 kV network.
  • Santo Domingo de los Olleros Thermal Power Plant Interconnection Agreement on the 500 kV network.

Legal and Regulatory Development

  • Draft Regulations for OSINERGMIN to avoid or eliminate administrative and governmental barriers to investment in hydroelectric power plants.
  • Draft Regulations for operators of electric power markets  (COES) to relocate the natural gas supply and transportation capacity when gas pipelines are overcrowded, and to regulate access to and trade in the energy spot market.
  • Draft Non-Conventional Renewable Energy Act.
  • Draft Cogeneration Regulations.
  • Proposal for adapting COES Technical Procedures to the Cogeneration Regulations.
  • Administrative Regulations for advanced reimbursement of IGTV (general sales tax).
  • Administrative Regulations for the Act to ensure the efficient development of electric power generation, with regard to electric power transmission.
  • Administrative Regulations for the Act to ensure the efficient development of electric power generation, with regard to auctions to supply electric power to the regulated market.
  • Participation in the drafting of the Act to ensure the efficient development of electric power generation.
  • Privatization of 15% of the shares of Consorcio Transmantaro.
  • Draft Regulations for the operation of the Electric Power SPOT market.
  • Draft Regulations for energy bidding competitions for the Regulated Market.
  • Participation in the team to implement the FONER Project in Peru.

Arbitration

  • Defense of EGESUR in an arbitration process with the System Economic Operating Committee – COES over withdrawals without a legal agreement.
  • Defense of KALLPA in an arbitration process with the System Economic Operating Committee – COES over withdrawals without a legal agreement.
  • Defense of IRRADIA in an arbitration process with Transportadora de Gas del Perú over the assignment of contractual position in a natural gas transportation agreement.
  • Defense of Red de Energía del Perú – RED in an arbitration -process with the System Economic Operating Committee – COES over the rules and principles to be followed by the system operator to ensure the system’s security and reliability at a minimum cost.
  • Defense of the Committee of Transmitters in an arbitration process with the System Economic Operating Committee – COES over the calculation of taxes to cover the COES budget.
  • Defense of SEAL in an arbitration process with the MEF over refundable electric power payments deriving from FONAVI  loans.

Promotion of Private Investment in Electric Power Infrastructure

  • Draft Plan for the Santa Teresa Hydroelectric Power Plant public-private association.
  • Draft Plan for the Molloco Hydroelectric Power Plant public-private association.
  • Proposal for the private capitalization of the Distriluz Government Holding.
  • Proposal for the private capitalization of Sociedad Eléctrica del Sur Oeste- SEAL.
  • Participation in the team promoting the Yuncán Hydroelectric Power Plant concession.
  • Participation in the team promoting the electric power system cold reserve concession (Talara C.T. (Thermoelectric Power Plant) , Ilo C.T. and Eten C.T.).

Proposal of a Private Initiative for the development of the SAN GABÁN III Hydroelectric Power Plant.

© Santivañez Abogados
Lima
República de Panamá 3461 Of. 901
San isidro Lima 15046 Perú
t. +51 (1) 202 8000
f. +51 (1) 202 8017
Piura
Los Tamarindos 274 Urb. 4 de Enero
Piura - Piura
t. +51 (73) 32 6994
f. +51 (73) 31 3192
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