Energy

By harnessing its hydro and gas resources, Peru has developed a robust and diversified energy mix. Cheap and plentiful power is one of the key comparative advantages for the country’s mining and industrial sectors. However, falling commodity prices coupled with anti-mining protests have led to the delay of major copper and gold projects in 2016. As a result, demand for energy has not reached previously forecast levels. Several major generation projects are set to come on-line in 2016 and 2017. As such, the country faces a period of oversupply estimated to last until at least 2021. In 2016 the push to facilitate the export of electricity should open up plans for major transmission projects and provide a new source of revenue for Peru. Meanwhile, at prices under $38 a barrel, appetite for oil exploration in the country’s remote regions has dwindled. This chapter contains an interview with Luis Ortigas, Former President, Perupetro.