The Bright Future of Renewable Energies in Peru: Challenges and Opportunities

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Date: June 20

Peru is in a unique position to take advantage of renewable energy, with non-conventional wind, solar photovoltaic and hydraulic renewable energy projects in the pre-operational phase that exceed 23,000 MW. This capacity is more than double the electricity that the country is expected to demand in 2034. Of these projects, 38 have a definitive concession, representing an investment of more than 6,000 million dollars.

The country has 61 projects for non-conventional wind and solar photovoltaic renewable energy plants, whose pre-operation study has been approved by the Government. If built, these projects could inject more than 23,000 megawatts (MW) into the National Interconnected Electric System (SEIN), more than four times the electricity the country currently produces.

The regions of Ica and Arequipa lead wind and photovoltaic solar initiatives, respectively. Projects are also planned in Lambayeque, Piura, Moquegua, Tacna, Puno, Áncash and Cajamarca. Only the wind and solar projects that have obtained the definitive concession would require investments of 795.3 million and 1,364.3 million dollars, respectively.

Globally, the International Energy Agency (IEA) estimates that between 2022 and 2027, global renewable energy capacity will increase by 75%. In Latin America, renewable energy capacity will grow 45% in the same period, led by investment in hydro and wind, with Brazil involved in 55% of the expansion.

Peru has great potential in non-conventional renewable energy, with a total of 25,000 MW in solar energy, 22,500 MW in wind, some 3,000 MW in geothermal and 1,200 MW, according to official information. Added to this are the country’s multilateral climate commitments, such as reducing the carbon footprint by 40% by 2030, and the demand from investors interested in leveraging projects that promote decarbonization.

However, there are challenges that must be overcome to materialize the expectation of investment in non-conventional renewable energy. These challenges include the lack of regulation to sell energy by hourly block, the long government approval periods for transmission line projects, and the lack of new productive projects that require energy.

Despite these challenges, the future of renewable energy in Peru is bright. With the right support and the implementation of effective policies, the country has the potential to become a leader in renewable energy generation in the region.

Source: Andina Energy

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