Energy
From The Report: Peru 2018
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Having 50% of its electricity generated from renewable sources – of which 42.7% comes from hydro – with this projected to reach 60% by 2025, Peru is making on progress on its goal to support the renewable energy segments. At the same time, the country is currently suffering from an oversupply of energy. This can serve as a growth opportunity, but only if the necessary demand can be identified and harnessed. Recognising untapped markets has the potential to make the energy sector more competitive. For example, electricity demand in the mining sector is estimated at 2 GW in 2018. According to 2017 data from the Central Reserve Bank of Peru, metal mining production increased by 4.2% over the course of the year, compared to the 2.4% drop seen in the hydrocarbons sector. The consistent growth of Peru’s energy sector in the past decade is not anticipated to slow in the near future. This chapter includes an interview with Rik de Buyserie, CEO and Country Manager, Engie Peru.

Articles from this Chapter

Overview

Gaining ground: With high levels of production, the country seeks to expand infrastructure and grid capacity
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In 2017 global energy demand grew by 2.1%, up from 0.9% the previous year, according to the International Energy Agency. This growth is largely explained by the increase in demand for fossil fuels, renewables and, to a lesser extent, nuclear energy. Peru is following this global trend, with a slight increase in energy demand and lower costs for renewable energy resources compared to conventional technologies. The cost of wind energy is now the same as that of coal: $30 per MWh. With 50% of its electricity…

Analysis

Positive steps: Peru looks to grow its hydrocarbons investment portfolio
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Several industry reports have illustrated the growing optimism in the short-term development of the international hydrocarbons sector. Although there is an overall optimism globally, the outlook in Peru is mixed with the advancement of certain projects and the stalling of others. In early 2018 the Peruvian government awarded new exploration investments to global energy majors, such as the US’ Anadarko and Tullow Oil of the UK. However, due to corruption cases and a change in government, President…

Interview

Next generation: Rik de Buyserie, CEO and Country Manager, Engie Peru, on the impact of surplus capacity and the regulatory framework
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Interview :Rik de Buyserie What impact does the country’s surplus of generation capacity have on the sector? RIK DE BUYSERIE: The immediate effect of any surplus is a decrease in prices. Therefore, energy consumption becomes inexpensive for both industrial and private users. However, this means lower margins for generators. This situation has divided the industry into two clearly defined groups. The first of these is formed by the top-three producers, which together control 60% of energy…