The project – to be fully owned by SN Power – has already been approved and registered to generate carbon credits under the UN`s Clean Development Mechanism (CDM). This approval was a decisive factor for the realisation of the project, SN Power said.

“SN Power has been in Peru since 2003, and we are today the fifth largest electricity provider in the country,” added Elsbeth Tronstad, Executive Vice President Communication and CSR, SN Power. “We have decided to invest in the Cheves Hydropower project to keep our market position, as we see Peru as an interesting market also in the future.”

The company – a JV between Statkraft and Norfund – currently operates eight hydropower plants in Peru with a capacity of 273MW and annual generation of 1.6 TWh.

The Cheves plant is expected to be completed by the end of 2013, with a new transmission network between the districts of Huara and Oyón to be built as part of the construction work.