Peru’s Mining Sector Consumes 34% of National Electricity as Renewable Energy Demand Accelerates

Peru’s mining sector accounts for 34% of national electricity consumption and represents over 55% of the free market segment where long-term supply contracts are negotiated, according to Celaris Energy CEO María del Pilar Matto. Energy costs constitute approximately 20% of mining operational expenses, making access to stable, cost-effective power critical for competitiveness. The sector’s decarbonization commitments and international market demands for minerals like copper are accelerating adoption of renewable energy contracts.

Celaris Energy operates the Manta Hydroelectric Plant in Áncash and the Caravelí Wind Park in Arequipa, providing certified renewable energy through long-term agreements. The company offers mining clients tools for efficient consumption management, enabling cost optimization and reduced exposure to fossil fuel price volatility. Retail expansion, distribution centers, and agribusiness operations are also increasing renewable energy uptake to stabilize operational costs and meet corporate sustainability commitments.

Non-conventional renewable energy generation grew 27% through October 2025 compared to the previous year, according to the Ministry of Energy and Mines. Nearly 20 solar and wind projects totaling 3.6 GW are in study or construction phases, with six projects—including Illa, San José, Sol de Verano I, Wayra Solar, Babilonia, and Caravelí—under active construction in Arequipa representing 1.1 GW scheduled for 2026-2027 commissioning.

Law 32249 modernizes Peru’s electricity market by establishing ancillary services mechanisms and enabling greater renewable integration. However, Matto emphasized at Peru Energía 2026 that regulatory gaps remain. Clear remuneration frameworks for ancillary services, effective battery energy storage system participation, and market signals recognizing flexibility resources are essential to transform investment potential into concrete projects. A Gerens and Laub & Quijandría Group report warns that inadequate infrastructure planning could generate $5.3 billion in additional transmission and storage costs passed to consumers.

The southern region posted 40% generation growth in February 2026 to 980 GWh, the highest increase nationally, while the central zone maintained leadership with 3,975 GWh representing 75% of total output. Hydropower led with 3,307 GWh, followed by thermal at 1,607 GWh, with wind contributing 208 GWh and solar 192 GWh. Lima, Huancavelica, Junín, and Puno remain the primary production hubs.