Energy market in Peru

Peru’s energy sector is undergoing a major transformation as it seeks to:

  • develop a more diverse energy matrix
  • reduce its reliance on fossil fuels
  • boost its production of renewable energy

As of 2023, Peru’s energy mix consists of:

  • 56% thermoelectric
  • 38% hydroelectric
  • 6% non-conventional renewable energy sources (wind, solar, biomass, geothermal, and tidal)

Peru aims to produce 32% of its energy using renewable sources by 2030. This makes it a promising market for investment and export opportunities in:

  • clean energy technologies
  • grid modernization
  • regional energy projects

A portfolio of 31 hydropower plants and 9 wind and solar projects is planned through 2028. Theprojected investment of the portfolio reaches USD 5 billion.

Key opportunities for Canadian energy companies in Peru

  • Development of renewable energy projects (wind, solar, small hydro, biomass)
  • Technology and equipment supply for clean energy infrastructure
  • Smart grid modernization and grid integration solutions
  • Energy storage systems to support the deployment of renewable energy
  • Decentralized energy and off-grid solutions for rural and remote areas
  • Consulting and technical advisory services for reforms in regulations and markets
  • Technologies for oil and gas transition (efficiency, emissions reduction, methane capture)

Industry highlights

USD 5 billion in projected investment in renewable energy by 2028

32% target for renewable energy ratio (RER) share in energy generation by 2030

Peru ranks fifth in Latin America in renewable energy attractiveness (EY, 2023)

Strong hydropower base, with emerging markets for wind and solar energy

Peru's business landscape

Peru’s government and industry are pushing the energy transition by boosting clean energy production and improving infrastructure. While hydro remains central to its production, Peru is now focused on developing other renewables to build a more diverse matrix.

Changes in regulations and proposed reforms for the energy sector should favour private investment and clean tech companies. Peru’s goals, particularly for its underdeveloped regions, provide a strong position for Canadian companies with experience in:

  • utility-scale renewables
  • grid integration
  • energy efficiency
  • off-grid technologies

Peru’s need for strong project development and sustainable practices also aligns well with Canada’s expertise in:

  • technical consulting
  • project finance
  • environmental compliance

Summary

Peru represents a growing and strategic market for Canadian energy companies, particularly in sectors such as:

  • renewable energy
  • smart grid
  • energy transition

Peru offers Canadian firms a platform for long-term growth in Latin America’s energy transition, thanks to its:

  • strong natural resources
  • ambitious clean energy targets
  • pipeline of infrastructure projects

Additional Information

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