According to the EY Peru study, Peru was ranked as the fifth most attractive country for investing in renewable energy in Latin America, after Chile, Brazil, Argentina and Mexico. Meanwhile, globally it was ranked 40th. In this regard, our country is one of the main markets that demonstrate great potential in the development of renewable energy projects.
Currently, energy generation in Peru is concentrated on hydro and thermal sources, the latter being largely composed of natural gas, while diesel is the secondary fuel that enters the market on a residual basis. It is worth mentioning that as of March 2024, both energies represented 92% of the production of the National Interconnected Electrical System of Peru (SEIN). On the other hand, energy generation by Renewable Energy Resources (RER) represented 7.8% of the total, where the largest production came from wind generation (6%) and solar generation (1.8%).
“Attracting and encouraging investment in renewable energy projects is key for the country, even more so if we have great potential for the development of this type of project. To do so, we need a commitment from the government to the regulatory inclusion of RERs in the market and the promotion of the construction of transmission infrastructure that allows their commercialization throughout the country,” said Carla Puente, tax partner at EY Peru.
Peru stands out in battery energy storage systems
It is important to note that this year, battery energy storage systems (BESS) were taken into consideration for the ranking’s scoring basis. According to the report, BESS will play a key role in a dynamic energy system by balancing the supply and demand of distributed energy resources and adding flexibility. In this field, Peru obtained a score of 16.9 out of the total score it obtained (50.9), being the third best score in Latin America, behind Chile (30.1) and Brazil (19.1).
Since last year, our country has had the Chilca-BESS system, the largest battery energy storage system in Peru. This system allows for an additional capacity of 50 MW of efficient energy to be allocated to the country, strengthening energy security and is expected to replace less sustainable energy sources such as coal or diesel.
For its part, the Ministry of Energy and Mines (Minem) currently has a portfolio of 26 power generation projects using renewable energy resources, of which 12 are hydroelectric, 11 photovoltaic and 3 wind farms. These projects would be implemented until 2028, with an approximate investment of US$5.6 billion.
Source: Larepublica
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