Kallpa's contracts will use the capacity in all of the company's power plants as well as the plants under construction.
Israel Corporation (TASE: ILCO) wholly-owned subsidiary Inkia Energy Ltd. has signed power purchase agreements (PPA) worth at least $1.5 billion through its Peruvian unit Kallpa Generacion SA. Kallpa signed several 8-10-year PPAs with a local power distributor for the sale of 560 megawatts of electricity beginning in 2014.
The electricity will be produced from Kallpa's gas turbine power plants. The new PPAs follow Kallpa's current long-term contracts, and boost electricity sales to 850 megawatts from the company's existing power plants as well as power stations under construction.
Inkia operates power plants in several Latin American countries through local subsidiaries, such as Kallpa, in which it owns a 75% stake. The company currently produces 3,000 megawatts, mostly in Peru, where it produces 40% of the country's electricity. For the sake of comparison, electricity production in Israel is 11,000 megawatts a year.