Andina

Peru an attractive market for renewable energy investment

13:01 | Lima, Jun. 21.

Peru is the fifth-most attractive country for renewable energy investment in Latin America, according to the latest Renewable Energy Country Attractiveness Index (RECAI) report by EY (previously Ernst & Young).

"The State has provided incentives to invest in renewable energy resources (RER) since 2008, and 64 projects have been awarded through four auctions," said Beatriz De la Vega, lead partner at EY Peru.

"A fifth auction is expected to be completed this year to make the most of available resources," she added.

It must be noted the estimated investment for the projects awarded in the past four auctions (2009, 2011, 2013, and 2016) is US$1.95 billion, with a total power of 1,273 MW.

Renewable recourses

Last year (2017), power generation through RER accounted for 5.06% of the total (48,993.3 GWh).

The hydroelectric generation has been the largest source of renewable energy (42.97%), followed by wind (40.42%), thermal biomass (11.62%), and solar (4.99%).

Peru has potential to offer different renewable energy sources such as wind (mainly in Ica, Piura, and Lambayeque regions), geothermal energy (in southern volcanic areas), hydro-power (throughout the Andes), among others.

Compared to previous years, Latin American countries have dropped places in the ranking as a result of greater projects and incentives in other continents, with Europe registering the highest number.

RECAI ranks the top 40 countries in the world in terms of the attractiveness of their renewable energy investment and deployment opportunities.

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Published: 6/21/2018