Peru is positioned as the fifth most attractive Latin American country to invest in renewable energy (behind Chile, Brazil, Argentina and Mexico), according to the latest RECAI 2023 ranking prepared by EY. In the last year, Peru fell one position in the ranking, going from 40th to 41st.
Currently, energy generation in Peru is concentrated in hydroelectric and thermoelectric plants, the latter using natural gas as the main source.
It is worth mentioning that, as of October 2023, energy generation by RER (Renewable Energy Resources) represented 9.4% of the total, where the largest generation came from wind projects (40.4%), hydraulic (37, 9%) and solar (16%), mainly.
“We have great potential for renewable energy projects and it is important that they have the necessary support to promote their development, which will obviously attract and enhance the execution of sustainable investment initiatives in our territory,” commented Carla Puente, Tax Partner. from EY Peru.
Currently, the Ministry of Energy and Mines (Minem) has a project portfolio of 31 power plants to be built, of which 9 would have wind and solar energy sources. These projects would be executed until 2028, with an investment of more than US$5 billion.
Likewise, with respect to the four RER auctions (2009, 2011, 2013 and 2016), 64 projects were awarded, with an investment close to US$1,950 million.
Although energy demand has not increased considerably in 2023, it is expected to increase along with the economic recovery process.
“We should aim to diversify the energy source and try to cover most of the increase in demand with renewable sources that allow sustainable development,” says Puente.
Geotermin still on the radar
According to RECAI, the most developed energy sources are precisely those from awarded RER projects, while the least developed renewable sources are marine and geothermal energy.
The diversification of renewable energy sources is a trend that is being promoted not only by various countries, but also by the industries linked to hydrocarbons.
A few years ago, some of the most important hydrocarbon companies in the world began a strong process of acquiring renewable energy projects.
This is a measure aligned with the growing concern about climate change, as well as future energy demand. Along these lines, Puente points out, Peru should review the National Energy Plan and project a horizon for investment in renewable energies.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
