Peru’s economic success story has made its energy sector one of the fastest-growing and dynamic one in the region. Total Primary Energy Supply (TPES) has grown from 408 PetaJoules (PJ) in 1990, to 1030 PJ in 2015. This is in part due to the electrification rate increased from just 60% in 1990 to over 93% today. If current projections are accurate, peak energy demand is set to almost triple from the current maximum of 6492 MW (2016) to some 15822 MW in 2030. In order to keep up with demand, the Peruvian government has invested heavily in its electricity grid (SEIN) and will continue doing so in the years to come.
Peru’s national energy plan highlights some exciting opportunities for the energy sector. Fossil fuels have had the largest share of TPES historically, with oil at 48.2% (2015) and natural gas at 30.3%, biofuels supply 11% and hydro 7.2%, while renewables currently stand at 0.4%. The story changes when looking at electricity generation. Hydro and natural gas are responsible for 45.8% and 46.5% respectively. Renewables currently account for 4.9% of the electricity mix, with the remaining 2.9% coming from coal & diesel. Geothermal power has so far been under-explored and utilized. While Peru currently produces excess electricity, investments must continue in order to keep up with demand due to growth in industry and the extractive sector. To this end, the government is looking to increase electricity generation, and at the same time boost the share of renewables (including hydro) to 60% by 2025. Gas will remain an important contributor but will see its percentage share fall as more renewable projects come online. Solar, wind, and geothermal energy have great potential in Peru due to favourable conditions. Solar in particular has some of the highest kwh/m2 potential in the world due to the strong concentration of UV rays. Studies also show that the wind force on the Peruvian coast is one of the best in the world. Peru is forming a long term vision for energy, and renewables will undoubtedly play a major role.