Thursday, July 17, 2025

Zelestra, a Spanish renewable energy company, aims to invest $1 billion in Peru's mines.

July 17, 2025

Zelestra, a Spanish company with a Latin American CEO, plans to invest $1 billion over five years in renewable energy plants that will power mines in southern Peru's copper-rich region.

Jose Luis Garcia, in an interview with The Associated Press on Tuesday, said that Zelestra, a subsidiary of the Swedish company EQT and part of their expansion into Latin America, aims to produce one gigawatt of renewable energy (GW) in Peru.

Garcia added that an estimated $1 billion to $1.5 billion in investment will be made over the next 5 years.

He said that the mining companies had very long-term agreements, which they would have to renew in the next three to four years. Lenders have also shown a strong interest in funding the projects.

Peru is the third largest copper producer in the world. Most of the mines are located in the south. This includes the Cerro Verde Mine, which is the largest mine. Other mines include those operated by MMG Ltd., Glencore, Anglo American, and Mexico Group.

According to data from the government, renewable energy is still an emerging technology in Peru. Hydroelectric plants account for 45% percent of this sector's output.

Recent acquisitions by Chinese companies in the power sector have raised concerns about business concentration.

China Southern Power Grid International controls over half of Lima’s electricity distribution, while China Three Gorges Corporation controls the other half. It is also Peru’s third largest power generator.

Zelestra inaugurated on Thursday its $177 million San Martin Solar Park in the Arequipa Region, the largest solar power plant in Peru with approximately 300 Megawatts.

Next up is the Babilonia Solar Plant, a 238 megawatt plant also in Arequipa. This project will cost an estimated $140 million.

According to data from the Ministry of Energy and Mines, Zelestra is also working on at least three renewable energy projects in the South. These projects total approximately 450 Megawatts.

Garcia stated that there are agreements in place with transmission companies, such as Kallpa energy, to provide energy to mining customers.

Garcia stated that Zelestra aims to build renewable energy plants, including solar, battery, and hybrid, in the region within five years. The half of this generation will be in Chile, 30% is in Peru, and the remainder in Colombia. (Reporting and writing by Marco Aquino, Alexander Villegas, Kirby Donovan; editing by Brad Haynes and Kirby Donovan).

(source: Reuters)

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