Peru, as a relatively developed country with a market economy in Latin America, is standing at a "new" starting point for the development of renewable
Solar Energy System. Here is a detailed analysis of Peru's "new" starting point for renewable energy:
Peru has abundant wind, solar, hydro and geothermal energy resources solar panel. Studies by the Ministry of Energy and Mines (MINEM) and others estimate that Peru has more than 19 gigawatts of wind potential, more than 23 gigawatts of solar power system potential and more than 2.8 gigawatts of geothermal potential in the southern region. These rich natural resources provide a solid foundation for the development of renewable energy in Peru.
Second, policy support and promotion
The Peruvian government has actively promoted the diversified development of the energy structure, and has continuously increased policy support for the field of renewable energy. As early as 2008, the Peruvian government promulgated the Renewable Energy Generation Investment Promotion Act (DL 1002), which set up a variety of measures and mechanisms to promote the development of renewable energy such as biennial auctions, subsidies, preferential sales and ensuring grid connection. Although the subsequent provisions of the Act have not been fully complied with, the Peruvian government continues to make efforts to promote the development of renewable energy. In 2022, the National Electricity Company of Peru promoted the development of the "2030 to 2050 zero emission energy transition roadmap", the goal is to reach 81% of Peru's total electricity generation by 2030, of which 35% from photovoltaic and wind.
3. Energy Transition and economic development
Peru's energy transition not only contributes to the reduction of greenhouse gas emissions, but is also closely linked to economic development. In recent years, Peru's gross domestic product growth has slowed and electricity demand growth has been lower than expected. However, with the acceleration of the global energy transition and the Peruvian government's emphasis on renewable energy, Peru's renewable energy market is ushering in new development opportunities. According to the electricity report released by the Peruvian Ministry of Energy and Mines, in March 2024, Peru's wind power generation was 295 GWH, an increase of 152.8%. Photovoltaic power generation was 95 GWH, up 61.7% year-on-year. Peru's "El Comercio" predicts that Peru's installed solar and wind capacity will double by 2024, and the proportion of Peru's energy mix will rise from 5% to 10%.
International cooperation and foreign investment
Peru has close cooperation with China and other countries, which provides a broad space for international cooperation in the field of renewable energy. Chinese enterprises have made significant investment and cooperation achievements in the field of renewable energy in Peru. For example, Southnet International (Hong Kong) Company completed the acquisition of shares in Peru Boruz Energy Co., Ltd. and Peru Boruz Integrated Energy Services Co., LTD.; Three Gorges Group has also carried out a number of energy cooperation projects in Peru, including Luz Company, SAN Gavan III hydropower station, Chagaia hydropower Station, etc. These cooperation not only help promote the development of renewable energy in Peru, but also provide new investment opportunities and market space for Chinese enterprises.
5. Challenges and opportunities coexist
Despite the promising prospects for renewable energy development in Peru, there are still some challenges. For example, Peru's overall electricity supply exceeds demand, resulting in a lack of sufficient impetus for new energy development; At the same time, Peru's transmission system needs to be upgraded to fully connect with the new renewable energy. However, these challenges also breed new opportunities. With the progress of technology and large-scale application, the cost of renewable energy will continue to decrease; At the same time, the Peruvian government is also actively promoting the transformation and upgrading of the energy structure, providing more policy support and market opportunities for the development of renewable energy.
In summary, Peru stands at a "new" starting point for renewable energy development, with abundant natural resources, policy support, economic development opportunities, and space for international cooperation. In the future, with the acceleration of the global energy transition and the continuous efforts of the Peruvian government, Peru's renewable energy market will usher in broader prospects for development.
