United States interest in advancing the green hydrogen sector manifests in the planned $2.5 billion facility near La Joya military airbase, led by South African firm Phelan Green Energy. The plant will produce approximately 180 MW of clean energy from solar and wind installations covering 4,000 hectares, positioning Arequipa as home to the largest hydrogen green complex in South America. This project aligns with global decarbonization goals and promises significant employment and technological development in the region.
Celaris Energy, with a $1.2 billion investment plan through 2028, is constructing the Caravelí wind farm, targeting 218 MW capacity and over 600 GWh annual generation, operational by late 2026. Additionally, Celaris operates smaller hydro facilities and supports a portfolio of seven renewable plants combining solar and wind technologies. Arequipa’s exceptional solar radiation levels, exceeding 7 kWh/m2 daily, foster steady expansion in photovoltaic projects, including Spain’s Zelestra-operated San Martín plant (830 GWh/year) and the forthcoming Illa facility, set to be Peru’s largest solar installation.
Mining remains central, with key projects such as Tía María ($1.8 billion) under execution and the Cerro Verde expansion extending operations to 2053, consolidating copper production as a significant regional economic driver. Government-led electrification programs complement large-scale projects, improving rural access and grid reliability, further strengthening Arequipa’s overall energy infrastructure. The combined advances in logistics, renewable generation, and mining operations reinforce Arequipa’s potential as a competitive, sustainable industrial hub in Latin America.
This article was curated and published as part of our South American energy market coverage.
