The Latin American country is focusing on solar, wind, biomass and geothermal power to help its economy grow further while also providing energy to the 3.5 million people who still lack access to electricity.
Enel Green Power’s growth in Brazil and Chile is well known, but the whole of Latin America is beginning to take up green energy development, with Peru one of the countries taking the lead on the continent. Peru is part of EGP’s 2018 business plan, giving the company the first mover advantage that has turned it into one of the leading renewable companies in Latin America.
‘Peru has a predominantly two-track energy mix consisting of thermoelectric and hydroelectric power,’ said EGP’s Head of Regulatory Affairs in Latin America Monica De Martino to Enel Radio. ‘The country has understood the need to diversify energy sources and to harness the high potential of new renewable energy sources it has at its disposal.’ It has set itself the target of meeting five percent of domestic energy demand through renewable energy.
Peru’s economy has grown at an average rate of between five and eight percent over the last decade , while inflation has stayed below two percent. According to De Martino this makes the country ‘one of the most competitive in Latin America, with stable macroeconomic fundamentals that offer positive returns for investors’. This despite the fact that the energy regulatory framework still needs improvements regarding the proper functioning of the market and the stability of the laws that govern medium- to long-term development.
The energy industry is gradually evolving . After the privatization of the 1990s, a law was issued in 2008 that set a share of renewable energy within the country’s mix. Over the course of 2014, 300 megawatts of wind power and 200MW of PV solar power will be developed through an auction. The government is planning to install one gigawatt of hydroelectricity capacity by 2016 while also developing the biomass and geothermal power sectors.
Economic growth and a better quality of life are two objectives that Peru has set for its near future. In this context, the development of the energy sector will be crucial for a country that needs to both satisfy rising consumption while correct imbalances in its infrastructure that have existed for many years.
Some 3.5 million people have no access to electricity in Peru . The advance of renewable energy, in particular solar power, and sustainable development of the distribution network will be the key to providing electricity to the around 550,000 households that still lack access to it.