Peru 2014-2025 energy plan released

In a special event at Peru’s Ministry of Energy & Mines on November 18, Minister Eleodoro Mayorga Alba presented the country’s new energy plan for 2014-2025, outlining the expansion of renewable energy and an increased emphasis on natural gas over other hydrocarbons.

Minister Mayorga said the country hoped to increase the share of renewable energy in its energy matrix to more than 60 percent, from the current 50 percent, mainly on the basis of upcoming hydroelectric projects. However, the success of this initiative is dependent on the rate of GDP growth. The government uses two different projections for GDP growth, 4.5 percent and 6.5 percent.

If GDP grows at the lower projected rate of 4.5 percent, then demand for electricity will grow slowly enough for developing hydroelectric projects to service it. However, if GDP grows at 6.5 percent, then demand will outstrip the capabilities of Peru’s planned hydroelectric infrastructure.

Natural gas is the standby that the government will count on to cover any rapid growth in demand, Mayorga said. The Southern Gas Pipeline currently being constructed from the Camisea field to the southern coast is the first part of this strategy, as the gas will power new thermal power plants at Ilo and Mollendo, expanding capacity by about 1 GW.

Mayorga suggested that in the future a northern gas pipeline could also be built, expanding supplies of natural gas in Peru’s already heavily industrialised north.