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Latin America

Peru

With a power score of 2.22, Peru ranks number 27 among Emerging Markets and number 6 in the Latin America region

Power score

2.22/5

12345

Score over time

2021 - 2024

33
2021
20
2022
14
2023
27
2024

Overview

Peru has a power score of 2.22, which puts it at rank 27 in the Emerging Markets power ranking. In comparison to 2023, Peru has dropped in the power rankings by 13 places, from rank 14, to rank 27.

At 2.22, the power score of Peru is better than than the regional average of 1.93 in the Latin America region and puts it at rank 6 in the region.

Regional comparison chart

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Peru

Power

Power policy

Peru implements policies in 5/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Priority grid access, Renewables mandate, and Renewable Energy Certificates.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Peru has dropped from 152.69 USD/MWh in 2022 to 127.63 USD/MWh in 2023. Since 2017, the average electricity price in Peru has fluctuated between 113.45 USD/MWh (2017) and 152.69 USD/MWh (2022).

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Power market

The top amount of capacity installed in Peru in 2023 was in Natural Gas at 33.11%, up from 32.5% in 2022. The technology with the biggest increase in capacity installed in 2023 was Small Hydro at 13.74%, up from 5.36% in 2022.

Installed capacity (in MW)

2000200520102015202005K10K MW

Electricity generation (in GWh)

20002005201020152020020K40K60K GWh

The top amount of electricity generated in Peru in 2023 was in Natural Gas at 43.23%, up from 42.27% in 2022. The technology with the biggest increase in electricity generated in 2023 was Oil & Diesel at 2.82%, up from 0.98% in 2022.

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Investment in clean energy in Peru was around $93.31 million in 2023, a decrease of 64.49% from 2022 ($262.80 million). Between 2018 and 2023, the highest investment in clean energy was in 2021 at $569.09 million, while the lowest was in 2019 with $51.80 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: Yes
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

Yes

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

Yes

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

Yes

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