Peru’s energy landscape is evolving fast—and its power transmission operator is riding the wave. In a bold pivot, ATN (a transmission concessionaire), controlled by Atlantica Perú, is entering the non-conventional renewable energy sector.
Its new 100 MW Montalvo solar project in the Moquegua region signals a significant strategic shift—from mere transmission to active power generation. Here’s a detailed look at what’s happening, how it works, and why it matters.
Project Overview & Key Figures
| Aspect | Detail / Figure |
|---|---|
| Project name | Montalvo Solar Project |
| Capacity | 100 MW |
| Location | Moquegua region, Mariscal Nieto province |
| Concession type | Temporary concession (possible extension for 1 year) |
| Time for studies | Up to 24 months for feasibility studies |
| Existing ATN concession | 30 years for the 583 km, 220 kV Carhuamayo–Cajamarca line (since 2011) |
| Parent company | Atlantica Perú / Atlantica Sustainable Infrastructure |
| Other generating assets | Hidrocañete (Nuevo Imperial hydro plant, 4 MW) |
| Other renewable interests | Generation assets across Chile, Colombia, Mexico, Uruguay |
This table highlights how ATN is branching out from its core transmission business into renewable generation—a move that aligns with global energy trends.
Why Now? Strategic Drivers
1. Rising Demand for Clean Energy
Peru is pushing to boost its share of non-conventional renewables (solar, wind, biomass) in its energy mix. Transmission operators entering the generation space help bridge gaps between capacity and grid access.
2. Leverage Existing Infrastructure
ATN already controls critical transmission assets. By developing its own generation projects, it can better manage grid integration, stability, and routing of energy from solar farms to demand centers.
3. Financial & Policy Incentives
The temporary concession allows use of public property and right-of-way access. If the project proves viable, ATN has preferential rights for a definitive concession. Also, Peru’s broader renewable goals encourage corporate investment in solar and wind.
4. Portfolio Diversification
Atlantica Perú’s ownership gives ATN access to renewable experience from other countries. Expanding into solar complements its transmission business and hedges against regulatory or market risks in transmission alone.
The Montalvo Solar Concession: Details & Process
- The Ministry of Energy & Mines approved a temporary concession to ATN for the Montalvo 100 MW solar park in Moquegua.
- Under this concession, ATN has 24 months to carry out feasibility and technical studies in Mariscal Nieto district.
- The concession allows public land use, temporary rights-of-way, and transit. It may be extended once (up to 1 year) and then converted into a definitive concession, giving ATN stronger, long-term rights.
- ATN’s existing 30-year transmission concession for the Carhuamayo–Cajamarca 220 kV line (583 km) has been in operation since 2011, demonstrating its role in Peru’s grid backbone.
- Atlantica Perú also owns a 4 MW hydro plant (Nuevo Imperial/Hidrocañete), giving it some generation experience to build on.
Implications for Peru’s Power Sector
1. Increased Renewable Capacity
The addition of 100 MW from Montalvo supports national targets to increase non-conventional renewable share. Peru is actively approving new solar and wind projects and expanding grid interconnections.
2. Stronger Grid Synergies
A transmission company owning generation assets can better synchronize production with grid needs, reduce bottlenecks, and improve efficiency in power dispatch.
3. Competitive Pressure & Market Evolution
Other transmission or grid operators may be incentivized to enter generation, blurring traditional lines between distribution, transmission, and generation. This could foster vertical integration in some cases.
4. Regulatory & Risk Challenges
As ATN transitions into generation, it must navigate permits, environmental impact studies, land rights, and regulatory oversight. Temporary concessions bear risks: if feasibility fails or policies shift, the project could stall.
The Broader Renewable Landscape in Peru
- Peru is connecting new solar projects—in 2024, over 115.55 MW of solar capacity was added in regions including Moquegua and Cajamarca.
- The national installed capacity of renewable power (solar + wind etc.) is approaching ~1 GW and continues to grow.
- Peru has set ambitious goals to raise the proportion of non-conventional renewables to 20 % by 2030, though currently the market is still catching up.
- Historically, renewables (solar, wind, biomass) account for around 6 % of the connected grid mix, signaling room for growth.
Together, these trends create fertile ground for operators like ATN to transition, experiment, and expand in the renewable energy domain.
“Transmission to Transformation” is more than a slogan—it captures a turning point in Peru’s energy architecture. With the Montalvo 100 MW solar concession, ATN is signaling that a transmission operator can evolve into a clean energy producer.
This move reflects global trends, local policy shifts, and the urgent need to expand renewable capacity.
If this blending of transmission and generation succeeds, it could set a blueprint for other operators in Peru and beyond. But success will depend on efficient execution, regulatory stability, community cooperation, and robust planning.
The journey from wires to sunshine is underway—and it may redefine Peru’s energy future.
