The development of Peru’s energy market has been rife with challenges and opportunities in recent years. While Peru...
Peru Energy
Peru has seen relatively stable economic growth and significantly reduced the number of people living in poverty. Still, there have been multiple cases of corruption, but the government of President Martín Vizcarra Cornejo, who took office in 2018, has focused efforts on combatting this and stabilising the political climate. Nevertheless, challenges to ensuring sustainable development remain.
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With a vast wealth and diversity of metals and minerals, Peru is rich in natural resources. Mining plays a significant role in...
Peru has seen relatively stable economic growth and significantly reduced the number of people living in poverty. Still, there have been multiple cases of corruption, but the government of President Martín Vizcarra Cornejo, who took office in 2018, has focused efforts on combatting this and stabilising the political climate. Nevertheless, challenges to ensuring sustainable development remain.
Having 50% of its electricity generated from renewable sources – of which 42.7% comes from hydro – with this projected to reach 60% by 2025, Peru is making on progress on its goal to support the renewable energy segments. At the same time, the country is currently suffering from an oversupply of energy. This can serve as a growth opportunity, but only if the necessary demand can be identified...
Contributing around 10% to GDP in 2017, the mining sector is fundamental to Peru’s economy, accounting for significant levels of foreign exchange and tax revenues, as well as the creation of direct and indirect jobs. Supportive legal and tax regimes, low production costs and an abundance of natural resources all contribute to increasing investor appetite, together with a relatively stable...
With a new administration in place, local and international players in Peru have regained optimism. As one of South America’s top performers due to its reforms and fiscal discipline, the country is benefiting from rising commodity prices and an export-oriented mining sector. In addition, 2018 brought increased public expenditure, with notable rises in the budgets for education, health, infrastructure and reconstruction.
The advent of plentiful natural gas has led to an evolution of the energy sector. Among President Pedro Pablo Kuczynski’s key pledges in the 2016 election campaign was the “massification of natural gas” to serve residents and industrial users across southern Peru. Another feature of Peru’s policy focus is to diversify gas exports, including the potential renegotiation of the country’s...