Energy
From The Report: Peru 2017
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The advent of plentiful natural gas has led to an evolution of the energy sector. Among President Pedro Pablo Kuczynski’s key pledges in the 2016 election campaign was the “massification of natural gas” to serve residents and industrial users across southern Peru. Another feature of Peru’s policy focus is to diversify gas exports, including the potential renegotiation of the country’s liquefied natural gas contract with Mexico. The government’s plan to use the country’s reserves to provide cheap fuel to both underserved citizens and industrial concerns should serve the economy well. Further infrastructure investment, to the tune of some $30bn, will be needed if the country is to reach its ambitious goals going forward, however, these plans are viable.

This chapter contains interviews with Gonzalo Tamayo, Minister of Energy and Mines, and Carlos Temboury, Director and Chairman, Enel Generación.

Articles from this Chapter

Overview

Stepping on the gas: Maximising hydrocarbons reserves remains a priority
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Among President Pedro Pablo Kuczynski’s key pledges in the 2016 election campaign was the “massification of natural gas” to serve residents and industrial users across southern Peru. Another feature of Peru’s policy focus is to diversify gas exports, including the potential renegotiation of the country’s liquefied natural gas (LNG) contract with Mexico. Camisea The Camisea gas field, which began production in August 2004, catapulted Peru into the big league of the continent’s…

Interview

In the pipeline: Gonzalo Tamayo, Minister of Energy and Mines, on strategies to expand and diversify energy coverage
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Interview:Gonzalo Tamayo To what extent do low gas prices affect the ability of the government to diversify the energy mix? GONZALO TAMAYO: Since 2004 the Camisea Gas Project has enabled considerable diversification to take place. For instance, prior to Camisea, the electricity sector was more reliant on hydraulic energy and thermal energy based on diesel and coal. In contrast, less than 45% of today’s energy mix depends on hydraulic energy, and 40-45% is natural gas from Camisea, while…

Analysis

Taking aim: Ambitious targets for renewable energy production have spurred growth in the segment
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According to the “Climatescope 2016” report, which asses the ability of countries to attract investment for low-carbon energy sources, Peru is currently one of only a handful of countries in Latin America with a mandatory renewable energy target, assumed to be revised every five years. In 2008 the Ministry of Energy and Mines (Ministerio de Energía y Minas, MINEM) set its first target, aiming to source up to 5% of total energy from non-conventional renewables by 2025, including wind,…

Interview

Equalising distribution: Carlos Temboury, Director and Chairman, Enel Generación, on improving the delivery of electricity to rural populations
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Interview: Carlos Temboury To what extent is Peru’s energy surplus hindering electricity generation capacity? CARLOS TEMBOURY: All actors in the chain are partially responsible for the surplus of energy. Prices have dropped, creating a scenario where energy is being sold at $48-50 per MWh to industrial clients, while users that are not subject to regulated prices buy it at $21-22 per MWh. Naturally, this has a negative impact on generation companies that are in the process of making significant…