Electricity sector in Peru

Electricity sector of Peru
Data
Electricity coverage (July 2018)96.4% (total), 86.7% (rural); (LAC total average in 2007: 92%)
Installed capacity (2006)6.7 GW
Share of fossil energy52%
Share of renewable energy48% (hydro)
GHG emissions from electricity generation (2003)3.32 Mt CO2
Average electricity use (2006)872 kWh per capita
Distribution losses (2006)6.3%; (LAC average in 2005: 13.6%)
Transmission losses (2006)4.7%
Consumption by sector
(% of total)
Residential24%
Industrial66%
Commercial19%
Tariffs and financing
Average residential tariff
(US$/kW·h, 2006)
0.1046; (LAC average in 2005: 0.115)
Annual investment in electricity (2006)484.6 million (27% public, 73% private)
Services
Sector unbundlingYes
Share of private sector in generation69%
Competitive supply to large usersYes
Competitive supply to residential usersNo
Institutions
No. of service providers38 (generation), 6 (transmission), 22 (distribution)
Responsibility for regulationDGE-National Electricity Office
Responsibility for policy-settingDGE-National Electricity Office
Responsibility for the environmentNational Environment Commission (CONAM)
Electricity sector lawYes (1992, modified in 1997)
Renewable energy lawNo
CDM transactions related to the electricity sector7 registered CDM project; 800,020 t CO2e annual emissions reductions

The electricity sector in Peru has experienced large improvements in the past 15 years. Access to electricity has increased from 45% in 1990 to 96.4% in 2018,[1][2] while service quality and efficiency of service provision improved. These improvements were made possible through privatizations following reforms initiated in 1992. At the same time, electricity tariffs have remained in line with the average for Latin America.

However, several challenges remain. Chief among them are the still very low level of access in rural areas and the untapped potential of some renewable energies, in particular wind and solar energy, due to an inadequate regulatory framework.

The current electricity generation capacity is evenly divided between thermal and hydroelectric sources. A renewed recent dynamism of the electricity sector in the country is based on the shift to natural gas plants, which will be mainly fed from the production of the Camisea gas field in the Amazon Rainforest.

The National Interconnected System (SEIN) serves 85% of the connected population, with several “isolated” systems covering the rest of the country. While investment in generation, transmission and distribution in urban areas is predominantly private, resources for rural electrification come solely from public sources.

  1. ^ "Access to electricity – SDG7: Data and Projections – Analysis". IEA. Retrieved 2020-03-31.
  2. ^ "Access to electricity (% of population) - Peru | Data". data.worldbank.org. Retrieved 2020-03-31.