Energy
From The Report: Peru 2019
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The development of Peru’s energy market has been rife with challenges and opportunities in recent years. While Peru could once stake a claim to being South America’s largest commercial producer of oil, fuel output has been on a steady decline for more than two decades, the country accounted for 1.8% of regional oil output in 2017. However, the same shifts that have undermined Peruvian petroleum – namely, technological breakthroughs in the extraction and distribution of natural gas, and innovations in renewable energy – have created new markets in a country abounding with natural gas and vast resources in solar, wind and biomass. Policymakers and investors intent on securing Peru’s energy future are looking to split the difference between these trends. Proposed amendments to the hydrocarbons law could double petroleum production and help to make up the shortfall in domestic supply. This chapter contains an interview with Jorge Olazábal, General Manager, Cálidda.

Articles from this Chapter

Overview

At a crossroads: Establishing energy security depends on legal reform, cross- border cooperation and investing in high-potential renewables
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The development of Peru’s energy market has been rife with challenges and opportunities in recent years, as the sector has come under cross-pressures from unique domestic concerns and sweeping structural changes in the global economy. On the one hand, while Peru could once stake a claim to being South America’s largest commercial producer of oil, fuel output has been on a steady and steep decline for more than two decades: according to the BP statistical review, the country accounted…

Interview

Milestone project: Jorge Olazábal, General Manager, Cálidda, on the economic and environmental benefits of progressive gasification
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Interview:Jorge Olazábal How could the gasification gap between the central and southern regions be narrowed? JORGE OLAZÁBAL: It is essential for us to make the best use of the resources we possess, which is why the Southern Peru Gas Pipeline project – as well as other large infrastructure projects – is so important: it will ensure the optimal use of Peru’s natural gas reserves. Our current natural gas proven reserves amount to approximately 14.1trn standard cu feet, which at current…

Analysis

Looking up to the sun: Work is under way to attract capital to renewable energy
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As of May 2019 Peru maintained 14,900 MW of renewable energy generation capacity, based on a mix of contributions from hydroelectric, wind, biomass and solar facilities. Hydroelectric and wind provided 43% and 40%, respectively; biomass sourced a further 11.6%; and solar produced the remaining 5%. The country earned a reputation as a renewables pioneer in the region with the completion in 2012 of Repartición, a 22-MW solar project, which was the largest of its kind in South America at the…

Overview

Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies
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Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…

Overview

Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies
OBG
plus

Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…