Hydroelectric Power, Peruvian Traditional Energy The Electric Power Sector
Peru traditionally produces hydroelectric energy and belongs to countries with a high rate of renewable energy. Good examples are the Gallito Ciego hydroelectric plant, a dam in the department of Lambayeque (image on the right) or the huge Mantaro Hydroelectric Power Plant, a masterpiece with a capacity of more than 1 GW, supplying approximately 20% to the System National Interconnected Electric Power (SEIN).
Unfortunately, under the hopes of the 'miracle' of the gas discovery in the lower Urubamba Camisea area, for more than a decade they 'forgot' these Clean sources.
Since 2004, hydrocarbons have taken an increasingly strong position. New gas generators concentrated in Chilca (65km south of Lima) have considerably increased the use of hydrocarbons for electricity generation. Fortunately, this attitude changed with the last governments and repairs and investments were made necessary to keep hydropower as a major source of electricity.
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Electricity and its sources
Peru electricity November 2016 On average, 48% of the electricity generated comes from water and 51% from hydrocarbons (mainly gas). This relationship varies during the year with the water level in the dams: from December to June, hydroelectric generation is higher. The chart shows the generation situation for November 2016. On the day of maximum demand (14/11), hydrocarbons participated with 51.9%, hydroelectric plants with 40.1%, solar and wind energy with 3.1, coal with 2.0% , Diesel and residual with 2.6% and biomass with 0.3% (source: Statistical Progress of the Electric Subsector, MINEM).
With the start-up of two wind farms in September 2014, the generation of non-traditional renewable energy surpassed for the first time 2% and in April 2016 achieved 2.56% with the connection of the new wind farm 'Tres Hermanas' (Ica) . Current data on the production and distribution of electricity can be found on the excellent pages of the Economic Operation Committee of the National Interconnected System (COES-SINAC) and on the Statistical Progress of the Electricity Subsector, published by the Electricity Directorate of the Ministry of Energy and Mines of Peru.
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Currently there is a very high generation capacity. The total effective installed power for the grid (SEIN) is 11.22 GW, well above the maximum point demand of 6.76 GW (COES, MRFO Report 2016). Consequently, the main challenge is not more production, but the costly distribution of energy to the vast areas of the national territory of insufficient coverage.
Low Coverage with Electric Power in Rural Areas
Historically, only the urban population had the convenience of electricity guaranteed. The majority of the rural population had no access to the network, nor the voice and the strength to claim it. However, there were successful isolated initiatives to electrify rural populations with decentralized systems (eg Pozuzo and Acopalca), these represented nothing more than a drop of water in view of the great need. According to the poverty map of the National Fund for Development Cooperation (FONCODES), 70% of the rural population in 2007 did not have access to electricity, with large variations between different departments. The graph to the right shows the situation (DGER source).
The government reacted and a number of projects are underway with significant improvement. The National Rural Electrification Plan with the National Rural Electrification Fund (FONER), which includes renewable energies, is currently in its second phase. More details are available on the very informative page of the Directorate General of Rural Electrification (DGER-MEM).
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Situation of Renewable Energy
In the first decade of the 2000s, the government retook its interests and investments in diversified electricity production, which includes traditional and modern renewable energy.
New laws have been introduced. The strong growth of the economy and the improvement of the living conditions, in general, require an increase of the electrical energy in over-proportional form. Different sources estimated that an annual increase between 8 and 10% is necessary to avoid a shortage. Currently, with the slowdown in economic growth, this figure is reduced to a value between 6 and 7%.
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Since Camisea gas is an economical source of energy, it is not surprising that electricity production has dominated for many years. According to an article in the newspaper El Comercio of January 5, 2012, the large facilities located in Chilca, south of Lima, supplied from 2015 to 50% of the electric energy in the country.
​With satisfaction, we can confirm that in April 2010, through an OSINERGMIN tender process, Peru committed to build three wind farms, four solar plants, two biomass plants and 17 small hydroelectric plants with a total generation capacity of 411.7 MW . The graph to the right shows the generation projects with renewable energy resources (published by the newspaper El Comercio on September 9, 2011). Since March 2016, all facilities are operational. Although non-traditional renewable energy currently accounts for only about 3% of total domestic production, it is an important step with a clear trend.