Zelestra's $1 Billion Renewable Energy Push in Peru: A Strategic Opportunity at the Intersection of Mining and Clean Energy

Peru's mining industry, a cornerstone of its economy and a global leader in copper production, is undergoing a seismic shift as it aligns with the global energy transition. By 2025, the country's energy landscape is no longer dominated solely by hydroelectric power but is rapidly diversifying into solar and hybrid renewable systems. This transformation is being driven by a critical intersection: the energy-intensive demands of mining operations and the urgent need for low-carbon supply chains. At the center of this shift is Zelestra, a Spanish renewable energy firm backed by EQT, which has committed $1 billion to develop 1 gigawatt of solar capacity in Peru's mining regions. This investment not only reflects the scale of opportunity in energy transition infrastructure but also underscores the strategic potential for investors seeking to capitalize on the confluence of mining and clean energy.

The Energy Transition in Peru's Mining Regions: A Tectonic Shift

Peru's mining sector, responsible for 60% of the country's export revenue, has traditionally relied on hydroelectricity, which accounts for 45% of national energy production. However, climate change-induced droughts and seasonal variability have exposed vulnerabilities in this model. The push for renewable energy is now accelerating, fueled by global market demands for responsibly sourced minerals. Copper, for instance, is a linchpin of the clean energy transition, used in electric vehicles, solar panels, and wind turbines. To remain competitive, Peru's miners must decarbonize their operations, and renewable energy is the most viable path.

The government has responded with a suite of incentives, including streamlined permitting, tax reductions, and partnerships with transmission companies like Kallpa Energy. These policies are attracting foreign direct investment (FDI) to develop infrastructure that directly serves mining clients. For example, Zelestra's San Martin solar park in Arequipa—inaugurated in July 2025—delivers 300 megawatts of power to Freeport-McMoRan's Cerro Verde mine, the country's largest copper operation. This project is part of a $1.5 billion pipeline targeting 3 gigawatts of regional renewable capacity, with 30% allocated to Peru.

Zelestra's Strategic Position: Powering the Future of Mining

Zelestra's entry into Peru is not accidental but a calculated bet on the country's mining-driven energy demand. The company's strategy focuses on southern Peru, where copper mines are concentrated and solar irradiation is among the highest in the world. By 2030, Zelestra aims to develop three additional projects in the region, bringing total capacity to 450 megawatts. These projects are designed to supply power to major miners like MMG Ltd and Glencore, which are under pressure from ESG-focused investors to reduce carbon footprints.

The economic logic is compelling. Solar energy's marginal cost is near zero after initial capital expenditures, offering miners long-term price stability. For instance, a 20-year power purchase agreement (PPA) with a solar provider can lock in energy costs at $0.03–$0.05 per kilowatt-hour, significantly lower than the $0.10–$0.15 range for diesel or grid electricity in remote areas. This cost predictability is a major advantage for miners facing volatile commodity prices and regulatory scrutiny.

Investment Potential: A High-Growth, Low-Risk Proposition

The renewable energy market in Peru's mining regions is projected to grow at a compound annual rate of 12–15% through 2035. This growth is underpinned by three factors:
1. Geopolitical Demand for Critical Minerals: Peru is the world's third-largest copper producer and a key supplier of lithium, zinc, and molybdenum. As global EV and renewable energy markets expand, so will the demand for these minerals—and the need to mine them sustainably.
2. Regulatory Tailwinds: Peru's government has set a target of 30% renewable energy in the mining sector by 2030. Incentives such as tax holidays and reduced royalties for green projects further enhance ROI.
3. Corporate Decarbonization Mandates: Miners like Anglo American and Freeport-McMoRan have pledged to achieve net-zero operations by 2040. Zelestra's projects align with these goals, creating a captive market for its energy output.

Risks to Consider: Navigating the Complex Landscape

While the opportunity is substantial, investors must remain cognizant of risks. Geopolitical tensions, particularly China's growing influence in Latin American energy markets, could disrupt supply chains or regulatory frameworks. Additionally, infrastructure bottlenecks—such as the need for transmission upgrades to connect remote solar farms to mining sites—require careful planning. Environmental and social risks, including land-use conflicts and labor disputes, also demand robust ESG frameworks.

However, Zelestra's partnerships with local transmission companies and its focus on modular, scalable projects mitigate many of these challenges. For example, the Babilonia solar plant (238 MW), expected to begin operations in mid-2026, is designed to integrate with existing grid infrastructure, reducing the need for costly new transmission lines.

Conclusion: A Win-Win for Investors and the Planet

Zelestra's $1 billion investment in Peru is more than a capital play—it's a strategic alignment with the energy transition's most critical drivers. For investors, the project offers a unique combination of high-growth potential and long-term stability, with returns tied to both the global demand for minerals and the rise of clean energy. For Peru, it represents a pathway to economic resilience and environmental leadership.

The key takeaway for investors is to position early in companies like Zelestra that are building infrastructure at the intersection of mining and renewables. Given the urgency of decarbonization and the scarcity of capital-efficient projects in emerging markets, this is a window of opportunity that will not remain open indefinitely. As the San Martin solar park demonstrates, the future of mining is not just about extracting resources—it's about powering them sustainably.