Autonomous regulatory entity that enforces compliance with legal and technical regulations related to electrical, and hydrocarbon and mining activities. Controls compliance with the obligations stated in the concession contracts. Tariff Regulatory Bureau has the authority to publish the regulated tariffs.
The National Electricity Office (DGE - Dirección General de la Electricidad), under the Ministry of Energy and Mines (MEM), is in charge of setting electricity policies and regulations and of granting concessions. It is also responsible for elaborating generation and transmission expansion plans and has to approve the relevant procedures for
The Rate Regulation Management (GRT) is OSINERGMIN''s executive body responsible for proposing to the Board of Directors the maximum energy and power tariffs for the Public Electrical Service, in accordance with the provisions contained in the regulatory framework of the electricity and hydrocarbon subsectors.
Fitch Ratings-Chicago-24 February 2021: Electricity spot prices in Peru will increase significantly, despite industry overcapacity, if the country''s regulatory framework is altered to consider the fixed portion of utilities'' cost structure, says Fitch Ratings. Thermal power generators that are highly contracted may experience slight margin
La Dirección General de Electricidad del Ministerio de Energía y Minas presenta la versión actualizada de la Ley de Concesiones Eléctricas, su Reglamento; la Ley para Asegurar el Desarrollo Eficiente de la Generación Eléctrica y sus Reglamentos.
The electricity sector in Peru has experienced large improvements in the past 15 years. Access to electricity has increased from 45% in 1990 to 96.4% in 2018,[1][2] while service quality and efficiency of service provision improved. These improvements were made possible through privatizations following reforms initiated in 1992. At the same time, electricity tariffs have remained in line with the average for Latin America.
However, several challenges remain. Chief among them are the still very low level of access in rural areas and the untapped potential of some renewable energies, in particular wind and solar energy, due to an inadequate regulatory framework.
The current electricity generation capacity is evenly divided between thermal and hydroelectric sources. A renewed recent dynamism of the electricity sector in the country is based on the shift to natural gas plants, which will be mainly fed from the production of the Camisea gas field in the Amazon Rainforest.
The National Interconnected System (SEIN) serves 85% of the connected population, with several "isolated" systems covering the rest of the country. While investment in generation, transmission and distribution in urban areas is predominantly private, resources for rural electrification come solely from public sources.
Installed generating capacity Peru is evenly divided between thermal and hydroelectric sources. In 2006, the country had 6.7 GW of installed capacity, 52% being thermal and 48% hydroelectric, with a negligible share of other renewable sources. Of the total capacity, 84% (5.63 GW) enters the electricity market, while the remaining 16% (1,03 GW) is generated for self-consumption.[3]
The dynamic nature of the electricity sector has continued during 2007, with an estimated 9.3% increase in generation, which is expected to reach 30 TWh. This increase is mainly due to the existing positive conditions for thermal generation through the use of natural gas in new plants and also to an increase in hydroelectric generation due to the availability of hydrological resources in the existing hydroelectric facilities.[7]
In 2006, total electricity consumption in Peru was 24 TWh, which corresponds to 872 kWh per capita per year. The consumption share for the different economic sectors is as follows:[3]
In terms of demand projections, the Ministry of Energy and Mines estimates that electricity demand will increase between 5.6% and 7.4% per year between 2007 and 2015.[8] It is expected that per capita electricity demand will reach 1,632 kWh in 2030.[9]
To meet this increasing demand, Peru will rely on natural gas, which is the most cost-competitive option among all other fuel types. As such, it is expected that the installed capacity of gas-fired electricity generation will increase from 0.3 GW in 2002 to 6.0 GW in 2030. It is expected that, from 2026 onwards, natural gas will acquire the dominant share in the electricity generation mix, reaching 44% in 2030 compared with hydroelectricity''s 37% share for the same year.[9]
In 2005, the average number of interruptions per subscriber was 14.5, while duration of interruptions per subscriber was 18.3 hours. Both numbers are very close to the weighted averages of 13 interruptions and 14 hours for the LAC region.[10]
Losses in 2006 amounted to 11% of total production. Distribution losses were 6.3%,[3] down from 22% a decade before and below the 13.5% LAC average.[10] Transmission losses for the same year have been estimated at 4.7%.[3]
The National Electricity Office (DGE - Dirección General de la Electricidad), under the Ministry of Energy and Mines (MEM), is in charge of setting electricity policies and regulations and of granting concessions. It is also responsible for elaborating generation and transmission expansion plans and has to approve the relevant procedures for the operation of the electricity system.[12]
In 2000, OSINERG was merged with the Electricity Tariffs Commission (CTE), currently known as Adjunct Office for Tariff Regulation (GART). Together, they are in charge of fixing generation, transmission and distribution tariffs and the tariff adjustment conditions for the end consumers. They also determine the tariffs for transport and distribution of gas by pipeline.[12]
As for rural electrification, the National Rural Electrification Office (DGER) is in charge of the National Rural Electrification Plan (PNER), which is framed under the policy guidelines set by the Ministry of Energy and Mines. DGER is in charge of the execution and coordination of projects in rural areas and regions of extreme poverty.[13]
Finally, the National Institute for Defense of Competition and the Protection of Intellectual Property (INDECOPI) is in charge of monitoring compliance with the Anti-monopoly and Anti-oligopoly Law of 1997.[12]
In 2006, 38 companies generated electricity for the market, while 78 companies produced electricity for their own use.[3] Among the 38 companies supplying energy to the market, four of them accounted for 70% of the total capacity:[3]
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