As of 2024, Peru has an installed solar panel production capacity of approximately 400 MW.⁶

With ongoing projects and expansions, the total capacity is expected to reach nearly 500 MW by the end of 2024.⁶

Hydro Energy Costs: For large hydropower plants, the levelized cost of electricity (LCOE) ranges from $0.02 to $0.19/kWh. This makes it one of the most economical sources of energy in the country, especially compared to fossil fuels.⁷

The LCOE range for small hydropower projects in Peru was between $0.02 and $0.10/kWh.

Natural gas-based generation in Peru averages around 3.5 cents/kWh.⁸

Solar Energy Costs: The levelized cost of energy generated by large-scale solar plants in Peru is around $0.068/kWh, a significant decrease from $0.378/kWh ten years ago. The price fell 13.1% between 2018 and 2022 alone.⁹

For residential solar systems, the average cost is around $4/watt.

Wind Energy Costs: Wind power is becoming increasingly cost-competitive in Peru. Several wind power plants are now being built without subsidies, with prices ranging from $33 to $38/MWh.¹⁰

¹¹

• Hydro power: 47.72%
• Thermal power: 46.03%
• Natural gas: 44.54%
• Wind power: 4.03%
• Solar power: 1.64%
• Diesel oil and residual oil:1.49%
• Bagasse power: 0.47%
• Biogas power: 0.12%

Peru has made significant improvements in its electricity supply reliability, with an average outage time of only about 5 hours per year for the national grid.¹²

There are significant initiatives and projects aimed at increasing the number of solar panel installations:¹³¹⁴¹⁵

• Phase One of the National Rural Electrification Plan (NREP) is set to power 175,000 homes and 3,000 community buildings.
• Over 230 solar panels were installed by Socios En Salud in various health centers throughout the country in 2023 alone.
• The National Photovoltaic Household Electrification Program is expected to install 12,500 solar photovoltaic systems over a 5-year period, benefiting 500,000 households.

Peru currently has six operational solar power plants, with a total capacity of 240.5 MW.¹⁶

The largest among them is the Rubí Solar Plant, which has a capacity of 144.5 MW.

The other plants include Majes, Moquegua, Panamericana, Reparticion, and Tacna, each contributing to the country’s solar energy generation.

Government policies significantly influence the off-grid solar market in Peru through various initiatives:⁴¹⁷¹⁸

• Rural Electrification Law: This law mandates the electrification of rural and isolated areas, establishing a fund for renewable energy projects, including solar, and facilitating access to off-grid solutions.
• Incentives and Auctions: The government has implemented feed-in tariffs, tax incentives, and competitive auctions for renewable energy projects, encouraging investment in solar technologies.
• Support for Nonprofits: Initiatives like those from Acciona Microenergía and PowerMundo provide solar home systems and financing models, expanding access to off-grid solar solutions in remote communities.

Peru’s current on-grid solar capacity is around 400 MW as of 2024, thanks to installed 115.5 MW of new solar capacity in the first half of 2024.⁶¹⁹

Government policies play a crucial role in driving the growth of the on-grid peru solar power market, offering feed-in tariffs, tax incentives, and competitive auctions for renewable energy projects, encouraging investment in solar technologies.

In 2018, Peru introduced net metering and new rules for distributed generation (DG) of renewable energy up to 10 MW. These policies allow surplus energy generated by on-grid peru solar power systems to be sold back to the grid, further incentivizing solar adoption.

• Solar Photovoltaic Installer: the average monthly salary is approximately $1,182.²⁰
• Solar Energy System Installer: the average monthly salary is approximately $1,006.²¹
• Solar Panel Technician: the average monthly salary is approximately $578.30.²²

The current population of Peru is 34,260,763.²³

Estimate for Factory Rent

The average rent for industrial and logistics real estate in Lima, Peru in the first half of 2022 was $8 per square meter per month for class B warehouse and distribution facilities.²⁴

Industrial Electricity Rates

The average wholesale electricity price in Peru was $152.69 per MWh in 2022.⁷

In 2023, electricity rates were reduced by 8.74% for residential users and 4.68% for commercial and industrial users.²⁵

Water Costs

The water rates for businesses in Peru are:²⁶

• For the first 1,000,000 gallons of water per month, the rate is $5.20 per 1,000 gallons.
• For the next 1,000,000 gallons, the rate is $3.22 per 1,000 gallons.
• For the next 2,000,000 gallons, the rate is $2.70 per 1,000 gallons.

Businesses must also pay a minimum monthly charge based on the size of the meter installed.

Salaries and Wages

Workers of solar industry in Togo averagely earn between $919 and $1,344 monthly, depending on the position.²⁰²¹²²

Rent for Office Space

The average monthly rent for office spaces in Lima, Peru ranges $14.42 –  $17.5 per square meter, depending on the location and size of the property.²⁷

Insurance

The average spending per capita in the Insurances market in Peru is estimated to be US$125.80 in 2024, including both life and non-life segments, with a significant portion of spending focused on non-life insurance products.²⁸

Electricity Generation

Peru’s electricity generation is characterized by a diverse energy mix, with approximately 54% of its electricity coming from renewable sources and 46% from conventional energy. Hydropower dominates the renewable sector, accounting for about 81.6% of the total installed capacity, which is approximately 6.74 GW. The country is also investing in wind and solar energy, with ongoing projects expected to increase renewable capacity significantly in the coming years. The government aims for renewables to constitute 60% of the electricity mix by 2025.²⁹

Transmission and Distribution

Peru is investing over $1.13 billion to enhance its power transmission infrastructure by 2032. This includes the development of new transmission links and substations, particularly in metropolitan Lima. The country is also exploring energy interconnections with neighboring countries like Ecuador and Chile to improve reliability and capacity. Currently, there are 23 electricity distribution companies operating in Peru, both public and private, which manage the distribution of electricity across the country.³⁰

Imports and Exports

Peru’s energy market is increasingly focused on both domestic consumption and international trade. The country is working on enhancing its energy exports, particularly in natural gas, where it has significant reserves. The government is also promoting energy interconnections with neighboring countries to facilitate trade and improve energy security.³¹

Energy Policy and Development

Peru’s energy policy is oriented towards sustainability and reducing greenhouse gas emissions. The government has implemented various legislative initiatives to promote renewable energy and enhance competitiveness in the energy sector. Key policies include the promotion of green hydrogen and the establishment of a regulatory framework to support renewable energy projects. The country aims for 99% electricity access by 2025 and is actively investing in infrastructure to support this goal.³²

³³

Concession Requirement: Solar projects with an installed capacity exceeding 500 kW must secure a concession from the Ministry of Energy and Mines (MEM), ensuring that large-scale projects adhere to national energy policies and regulations.

Environmental Impact Assessments: All solar projects are required to conduct environmental impact assessments to evaluate potential ecological effects, which must be approved by the relevant authorities before project initiation.

Technical Standards Compliance: Solar panel production and installation must comply with specific technical standards set by regulatory bodies, ensuring that systems are safe, efficient, and reliable.

Grid Interconnection Standards: Regulations dictate that solar energy producers must follow established procedures for connecting to the national grid, which includes ensuring that their systems can integrate smoothly with existing infrastructure.

Financial Incentives: The Peruvian government offers various financial incentives, including tax exemptions and subsidies, aimed at promoting investment in solar energy projects and fostering the growth of renewable energy sources

⁶³⁴³⁵

Legislative Proposal for Solar Canon: A bill has been proposed to establish a solar canon, which would allocate 50% of the income tax paid by photovoltaic plant concessionaires to support social development projects. This initiative aims to enhance the economic contributions of solar energy while addressing local social needs.

Investment in New Solar Capacity: The Ministry of Energy and Mines reported the installation of 115.5 MW of new solar capacity in the first half of 2024, including projects like the 115 MW Clemesí project in Moquegua, which had an investment of $81 million.

Promotion of Green Hydrogen Projects: The Peruvian government is also eyeing significant investments in green hydrogen, with companies planning to invest over $12.5 billion in related projects. This initiative is expected to complement solar energy production by utilizing solar power for hydrogen generation.

Environmental and Technical Support: The government provides guidelines and support for environmental impact assessments and technical standards to ensure that solar projects are sustainable and efficient. This regulatory framework facilitates the growth of the solar market by ensuring compliance with national standards.

Tax Incentives and Subsidies: The Peruvian government offers various tax incentives and subsidies to encourage investment in solar energy projects. These financial mechanisms are designed to lower the barriers for developers and promote the adoption of solar technology across the country.

³⁶³⁷³⁸

Current Projects

Clemesí Solar Power Plant: Located in Moquegua, this 115 MW solar project began operations in February 2024 with an investment of $81 million. It features over 220,000 bifacial solar panels and covers an area of 270 hectares.

Carhuaquero Solar Power Plant: This 0.55 MW solar project in Cajamarca commenced operations in February 2024, requiring an investment of $400,000.

Algarrobal Solar Park: Developed by Fenix Power Peru, this 251 MW solar park is currently the largest operational project in the country.

Projected Projects

Tacna Solar PV Park: A 700 MW solar project currently in the permitting stage, expected to come online in 2025.

La Joya Solar PV Park: A 500 MW solar project in Arequipa, also in the permitting stage and expected to be operational by 2025.

Hanaqpampa Solar PV Park: A 340 MW solar project in Moquegua, currently in the announced stage with an expected commercial operation date of 2026.

Matarani Solar Power Plant: Scheduled to begin operations in Arequipa in 2024, this 97 MW project is expected to generate 260 GWh annually and is located in the Mollendo Desert, known for its abundant solar radiation.

³⁸³⁹

Acciona Energía Perú

• Headquarters: Madrid, Spain (operates in Peru)
• Website:https://www.acciona.com/
• Notable Project: Acciona is a global leader in renewable energy, focusing on sustainable infrastructure and energy solutions. In Peru, they are developing the San José photovoltaic project, which will have an installed capacity of 155.7 MW.

Engie Energia Peru

• Headquarters: Lima, Peru
• Website:https://engie-energia.pe/
• Notable Project: Engie is a multinational utility company that specializes in energy and services. They are involved in several solar projects in Peru, including the Hanaqpampa Solar PV Park (340 MW) and the San Jose Solar PV Park (165.6 MW), both expected to be operational by 2026.

Kallpa Generación

• Headquarters: Lima, Peru
• Website:https://kallpageneracion.com.pe/
• Notable Project: Kallpa Generación is a major player in the Peruvian energy market, focusing on thermal and renewable energy. They are developing the La Joya Solar PV Park, which will have a capacity of 500 MW and is expected to come online by 2025.

Cobra Instalaciones y Servicios SA

• Headquarter: Madrid, Spain (operates in Peru)
• Website:https://www.grupocobra.com/en/peru/
• Notable Project: Cobra Instalaciones y Servicios SA is a leading provider of comprehensive infrastructure and facility management solutions. With a strong presence in Peru, the company specializes in delivering advanced technical services and innovative installations across various sectors.

Grenergy Renovables SL

• Headquarter: Madrid, Spain (operates in Peru)
• Website:https://grenergy.eu/en/
• Notable Project: Grenergy focuses on the development, construction, and management of renewable energy projects. They are actively developing solar projects in Peru, contributing to the increasing solar capacity in the region.

Enel Green Power Perú

• Headquarter: Lima, Peru
• Website:https://www.enel.pe/
• Notable Project: Enel Green Power Perú is a major player in the Peruvian solar market, operating several large-scale solar photovoltaic projects. The company focuses on integrating renewable energy into the grid and advancing the development of solar farms to support Peru’s transition to cleaner energy sources.

Statkraft Perú

• Headquarter: Lima, Peru
• Website:https://www.statkraft.com.pe/
• Notable Project: Statkraft Perú is part of Statkraft Group, a global leader in renewable energy. In Peru, Statkraft is involved in developing and managing solar projects that contribute to the country’s renewable energy targets and enhance the sustainability of its power sector.

EnsaSolar (part of Energía del Pacífico)

• Headquarter: Lima, Peru
• Website:https://energiadelpacifico.com/
• Notable Project: EnsaSolar, a subsidiary of Energía del Pacífico, specializes in the design, construction, and operation of solar energy systems in Peru. The company is dedicated to expanding the use of solar technology and increasing the share of renewable energy in Peru’s energy mix through innovative solar projects.