Energy transition and renewable energies: Challenges for Peru

Abstract

Peru currently presents serious challenges in the promotion and production of renewable energies, making it difficult to fulfill its commitments to reduce greenhouse gas emissions within the framework of the United Nations Climate Change initiatives. Peru has a high renewable energy potential with various sources: solar, wind, geothermal, biomass and hydroelectric. However, after twelve years of having promulgated a law to promote the development of power plants that use renewable energy resources through auctions, only about 5% of current electricity generation comes from renewable sources and the auctions are suspended.This article will analyze the causes of the difficulties that Peru presents to achieve a change of the energy matrix in electricity towards renewable energies, among which: lower economic growth, excess installed capacity, deficiencies in the regulatory framework and the need to changes that lead to a new institutional framework. It is essential to build a new consensus between the government, companies, and civil society to achieve the objectives of climate change in Peru.