Energy & Utilities
From The Report: Peru 2012
View in Online Reader

The exploitation of the Camisea natural gas field has attracted investors to Peru and caused the country to look more closely at the potential of its hydrocarbons industry. The government has also turned its focus to oil production, with state-owned energy company Petroperú stating it hopes to triple oil production over the next four years and thereby turn Peru from a net importer of crude to a net exporter. The country is also adding hydroelectric generating capacity with private investments, thereby bringing electricity to more rural areas. While the government is obviously dedicated to developing its energy sector, it also must address a number of social conflicts – which involve the effects of hydrocarbons projects on indigenous populations, as well as environmental concerns.

This chapter includes an interview with Jorge Merino Tafur, Minister of Energy and Mines.

Articles from this Chapter

Analysis

A natural choice: Encouraging investment in renewable energy sources
OBG
plus

The rationale behind recent legislation to promote investment in green electricity-generating facilities lies not just with its eco-friendly nature, but also in the ability of these resources to operate independently of the national power grid in remote towns and villages in the mountains and jungles. Indeed, roughly 33% of the rural electrification programme will rely on renewable energy resources, particularly wind and solar. LEGISLATION: “Our Renewable Energy Law 1002 set a participation…

Analysis

An historic project: Bringing in significant export revenues, the Camisea gas field is also lowering energy costs
OBG
plus

Deep in the heart of the Amazon jungle lies one of South America’s largest discovered reserves of natural gas, known as the Camisea. Its discovery and development are now integral elements in Peru’s economic development, with royalties from the project alone anticipated to pour more than $30bn into government coffers during its estimated 40-year duration. The discovery of the field also makes Peru South America’s second-largest holder of proven gas reserves, behind Venezuela. Located…

Analysis

Supplying the grid: Capacity upgrades are needed to meet rising demand
OBG
plus

Increased demand on the national power grid has prompted investments seeking to boost power generation capacity throughout the country via both hydroelectric and natural-gas-fired thermoelectric power plants. Indeed, from 2011 to 2013 the central bank has predicted investment in the electricity sector to total just over $7bn. The Ministry of Energy and Mines (Ministerio de Energía y Minas, MEM) already reported $1.95bn worth of investments to improve Peru’s national electricity grid in 2011.…

Analysis

Go with the flow: Improving water supplies and realigning subsidies are key to keeping pace with growth
OBG
plus

Water problems made the headlines in Peru in early 2012 when local protests halted progress on a major mining project in the northern city of Cajamarca. More than 2000 locals gathered to voice their concern that the new mine, owned primarily by the US-based Newmont Mining, would pollute the water supply and negatively affect a local aquifer. While protests have since calmed, Peru’s water issues remain in the spotlight. While, as a whole, Peru has an abundant supply of water, most of it is…