Greening Peru’s Energy System: Promoting Clean Energy for a Resilient Power System

Project Summary:

Peru’s energy and climate policy are geared toward a greener development, and the realization of the policies are crucial to meet Peru’s renewable energy targets and greenhouse gas (GHG) emission reductions. The project aimed to support the Government of Peru’s efforts to realize a greener, more resilient, sustainable and competitive energy system and to achieve its renewable and EE targets while meeting its GHG reduction goals. The program aimed to address key aspects to support Government of Peru achieve a green growth pathway while strengthening their power sector. By achieving green competitiveness, other co-benefits can be brought to the industrial sector and overall productive activities in the national economy.

List of Activities:

1. Assess the integration and planning of hydro power and natural gas development to improve the efficiency and resiliency of the energy system to provide a diversified and reliable energy matrix.
2. Studying the integration of Variable Renewable Energy (VRE)
3. Develop an action plan for the realization of EE potential for the country to help achieve a lower energy demand and reduce energy intensity levels.
4. Identify innovative finance mechanisms for investments needed to help improve the quality of service of the sub-transmission and distribution systems

Outcomes:

Output 1:

• Study on the integrated planning of existing indigenous energy resources and vulnerability of the energy system to the impacts of CC 

Output 2:

• Study assessing for the integration of VRE in Peru’s power system

Output 3:

• Action Plan for the implementation of Peru’s EE potential 

Output 4:

• Study on innovative finance mechanisms for investments in sub-transmission and distribution to improve the quality of service

Outcomes:

The project improved the efficiency and resiliency of the power system to build a more competitive and efficient energy system, which can lead to more economic opportunities. Th project also delivered an assessment of the vulnerabilities to the effects of CC and “El Niño” to develop strategies for coping with the growing impact on infrastructure systems associated with CC. This activity increased awareness on the importance of incorporating climate change resilience in the design and planning of the country’s power system, while helping attract investments towards a more resilient electricity infrastructure. Lastly, this project helped develop green competitiveness by supporting a more efficient and long term use as well as planning of the indigenous energy resources at national level, reduced energy intensity levels through the realization of EE actions, and provided a better quality of electricity service through innovative financing schemes to eventually build resilient local communities.

Collaboration with K-Partners and Others:

WBG internal partners:

• CMU: collaboration and discussion during implementation phase
• ESMAP: collaboration on the study on renewable energy integration, and EE study
• Energy and Extractives GP: collaboration on the assessment of the integration and planning of natural gas and hydro development
• Climate Change Cross Cutting Solutions Area (CCSA): Climate change adaption experts from the climate change CCSA to collaborate on the peer review of the study on the vulnerability of the Peruvian energy system to climate change.

K-Partners:

• New and Renewable Energy Resource Center of Korea (NRERC): Collaboration with experienced Korean firms and organization in the field of renewable energy technology and planning through sharing best practices

Other external partners

• Government of Peru: In-kind resources
• AWS Truepower: A renewable energy firm specialized in wind and solar technologies in the LAC region to provide advice on the renewable energy integration assessment.