French energy company GDF Suez outlined plans to build a new 400 megawatt power in southern Peru through a subsidiary.
GDF Suez said its Peruvian subsidiary EnerSur, the second-largest private electricity company in the country, would install a thermo-electric power plant in the southern city of Ilo.
The French energy company said it was looking at the construction as a way to expand its footprint in Latin America.
The energy generated from the 400 MW plant will be used primarily by the Peruvian market, which the French company said would dramatically improve the current power system.
GDF Suez said it aims to invest around $200 million in the project in a 20-year concession contract with the Peruvian Ministry of Energy and Mines.
The Ilo power plant, a hydroelectric plant and a combined cycle plant recently launched in Peru increased the installed capacity for GDF Suez by 75 percent, the company said.