MINEM is considering introducing schedule blocks to tenders. Credit: MINEM
Peru is preparing a reform to its energy policy in order to support more renewable energy penetration, according to the minister of energy and mines, Francisco Ísmodes.
The minister said the plan is to improve the competitiveness of investments in renewable energy and to allow these alternative technologies to freely participate in the national market but to do this an update to the regulatory framework Renewable Energy Resources (RER) is necessary.
Various options being evaluated include recognising firm power from one generator or introducing schedule blocks to tenders so that renewables can aim for the time periods most suitable to their generation profile. A similar block system has been used successfully in Chile’s major power tenders in recent years.
According to consultancy GlobalData, Peru currently generates power from coal, gas, oil, hydropower and other renewables, with thermal energy as the main source of power generation, and the majority of installed thermal capacity using gas.
Ismodes said the government also expects to install around 260,000 solar panels in various un-electrified areas of the country that require electricity by 2021 as part of its total electrification plan.
His government has also put US$526 million towards more than 10 electricity generation and transmission projects. Minister of Energy and Mines (MINEM) is also developing a regulatory framework to promote the entry and use of electric and hybrid cars in the country.
In March, Italian power giant Enel, through its Peruvian subsidiary Enel Green Power Peru (EGPP), started operations at the 180MW Rubi solar PV plant, which is Peru’s largest solar project.