Energy & Utilities
From The Report: Peru 2014
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Although its resource wealth should help to ensure Peru’s long-term energy security, in the short term surging demand continues to put pressure on the sector. A recent influx of investment in hydroelectric power stations and natural gas-fired thermoelectric facilities should be enough to stave off any bottleneck in electricity generation and avert potential power shortages in 2016 and 2017. Within the hydrocarbons subsector, the commercialisation of the giant Camisea field in 2004 changed the country’s energy mix, sparking an increase in exploratory investment. It is estimated that as much as $25bn could be invested in the hydrocarbons sector from 2011-20. Peru currently relies on a single pipeline to provide the gas used to generate more than 40% of electricity, and more broadly, the lack of infrastructure is the main and most pressing challenge facing the industry in the near term.

Articles from this Chapter

Overview

The perfect mix: As demand for energy surges, investment in new projects flows in
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Though a wealth of natural resources protect long-term energy security, in the short term, surging demand continues to put pressure on the sector. A recent influx of investment in Peru’s hydroelectric power stations and natural gas-fired thermoelectric facilities should be enough to stave off any bottleneck in electricity generation and avert potential power shortages in 2016 and 2017. The delay of one or two major power generation projects could nonetheless spell trouble. Within the hydrocarbons…

Analysis

Renewed hope: A glance at the long-term potential of renewable energy resources
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The fight against global warming has prompted investment in renewable energy resources across the globe and Peru is no exception. Historically, Peru invested vast amounts into its renewable hydroelectric resources and relied on these for as much as 90% of the country’s electricity generating capacity. Gradually, so-called unconventional renewable energy resources are now also being introduced into the national grid. In fact, according to its long-term strategic plan, the Ministry of Energy and…

Interview

OBG talks to Jorge Merino Tafur, Minister of Energy and Mines
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Interview:Jorge Merino Tafur Can Peru become a net exporter of energy in the medium term? JORGE MERINO TAFUR: In the medium term our goal is to supply the internal market, while also striving to become self-sufficient in liquid hydrocarbons. Our large hydroelectric potential makes it possible to supply the domestic market and export the excess in the long term. This will require significant policy adjustments, however, to ensure that the development of communities that are directly affected…

Interview

OBG talks to Jorge Merino Tafur, Minister of Energy and Mines
OBG
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Interview:Jorge Merino Tafur Can Peru become a net exporter of energy in the medium term? JORGE MERINO TAFUR: In the medium term our goal is to supply the internal market, while also striving to become self-sufficient in liquid hydrocarbons. Our large hydroelectric potential makes it possible to supply the domestic market and export the excess in the long term. This will require significant policy adjustments, however, to ensure that the development of communities that are directly affected…

Analysis

Role change: Potential expansion of the state-owned energy company
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Petroperú has been a state-owned energy company since 1969 and originally held a central role in the energy sector. However, after a process of sector privatisation in 1992, the company’s role has been limited to the transportation, storing, refining and commercialisation of energy commodities. Despite the comparatively limited role that Petroperú has played recently, plans to return the company to hydrocarbons production could see the firm’s activities range from upstream to the addition of…

Analysis

Fluid situation: A closer look at local hydroelectric resources
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With an estimated maximum potential for hydroelectric power of 69,445 MW, Peru has an abundant source of renewable energy. The potential capacity of hydroelectric resources was roughly 12 times greater than peak electricity demand in 2012. However, in recent years hydroelectric plants have become less important in supplying power to the national grid due to the rise of gas-fired thermoelectric plants outside of Lima, a trend which concerns some within the sector. While short-term plans from the…

Analysis

Ties that bind: Connecting energy infrastructure could create new opportunities
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While in the short term energy supply may be under considerable pressure due to rising demand caused by the rapidly growing economy, Peru’s wealth of natural resources bodes well for its long-term energy security, as well as the country’s potential to become a major energy exporter. With energy costs in neighbouring countries significantly higher than domestic prices – electricity prices in Chile are roughly three times Peruvian rates – there are several avenues the country could pursue given…