Peru is accelerating its energy transition through a diversified energy matrix and reinforced commitments to reduce greenhouse gas emissions by 2030. Strategic modernization of the electricity grid and growing renewable capacity position Peru to enhance energy security and sustainability amid regional and global climate ambitions.
Peru’s electric energy matrix remains distinguished by a balance between renewable and non-renewable sources. In 2023, renewable generation, including both conventional hydropower and non-conventional wind and solar, accounted for approximately 53% of total electricity production, while the remaining 47% derived mainly from natural gas. Unlike neighboring countries heavily reliant on a single energy source, Peru’s diversified approach mitigates risks related to supply disruptions and prices volatility. This diversification aligns with its updated Nationally Determined Contributions (NDCs) under the Paris Agreement, which raised the emission reduction target from 20% to 40% by 2030, contingent upon international financing and favorable conditions. Energy sector initiatives represent a significant portion of mitigation efforts, with 37 of 62 climate actions linked to expanding renewable energy, increasing efficiency, and promoting transport electrification. Regulatory frameworks have reinforced this trajectory. The Supreme Decree N.º 003-2022-MINAM directs the Ministry of Energy and Mines to foster competitive deployment of non-conventional renewables, targeting a 20% share in the matrix by 2030. The national legal framework, including the recently enacted Climate Change Law and the National Adaptation Plan, provides policy coordination to enable climate resilience while pursuing low-carbon development. Infrastructure modernization is underway through the 2023 Smart Grid Roadmap, enhancing grid intelligence to support greater renewable integration and efficient electricity management. At a regional level, Peru emphasizes energy interconnection with neighbors to optimize renewable energy exchanges, strengthening South America’s integrated market. Overall, Peru’s strategy combines environmental goals with energy diversification and infrastructure modernization, positioning the country to meet growing demand in a sustainable, reliable manner. This integrated approach supports progress toward Sustainable Development Goal 7’s mandate of ensuring universal access to affordable and clean energy by 2030.
This article was curated and published as part of our South American energy market coverage.
