GDF Suez has been awarded a contract to build a 500 MW diesel-fired power plant in Peru.

The plant will run on diesel but eventually switch to natural gas, according to a statement by chief executive Gerard Mestrallet.

The news comes just days after the announcement of a 590 MW diesel-fired power plant in Peru being undertaken by IC Power

The French energy company plans through its subsidiary, EnerSur, to invest around $500m in the new plant, which is scheduled to commence operations in 2017.

Gerard Mestrallet
“With this new project, we will consolidate our leading position as a power producer in the country and as an important contributor to the economic and social development of Peru,” Mestrallet said in the statement.

The project is backed by a 20-year investment agreement with the Peruvian government.

Earlier this year GDF SUEZ commissioned the 460 MW Ilo Cold Reserve thermal power plant, and through its 61.7 per cent interest in EnerSur, the Group currently has almost 2000 MW of production capacity in Peru.

Latin America currently represents the largest market for GDF SUEZ outside Europe. The Group operates more than 10 per cent of its power generation facilities in this continent.

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