In allusion to the renowned statement by researcher Antonio Raimondi (1), Peru is known for being a country blessed with natural resources. Our minerals, natural gas, fishmeal, and agro-exportation resonate most globally.
However, it is not apparent to all that the country has sunlight, wind, and other renewable sources, placing Peru in a competitive global position for energy production. We are sitting on a green energy bank that needs to be leveraged for the benefit of all Peruvians.
Peru possesses a potential of ~120,000MW of renewable resources. Solar generation could reach ~25,000MW of available resources, but we are currently only harnessing 1.2%. Wind generation could reach 22,000MW of available resources, of which we use around 1.9%.
Energy transition is a cornerstone for closing the country's electricity gaps and contributing to global carbon neutrality by 2050. To achieve a sustainable energy transition, at least three elements must be considered: (I) Security: a stable supply with the fewest interruptions to ensure operational continuity. (II) Economic Efficiency: energy at the lowest cost to facilitate business profitability and investments in new renewable projects. (III) Environmental Commitment: reduction of greenhouse gas emissions.
"We are in the most crucial decade to take action against climate change. In line with the global Paris Agreement, Peru has undertaken the Commitment to reduce carbon emissions by 40% by 2030 and achieve net-zero carbon by 2050. Companies from all sectors, as well as citizens, are part of this global Commitment, and we must act now."
A significant challenge for Peru's transition is achieving a reasonable balance between various energy sources (conventional and renewable). The energy transition requires incorporating different renewable sources into the system and complementing them with low-carbon alternatives to achieve the highest level of security and economic efficiency while maintaining environmental Commitment.
In this regard, natural gas is a key player in the energy transition, being the lowest carbon hydrocarbon available and one of Peru's most economical energy sources. Additionally, it provides supply security and generates benefits in other sectors of industry and domestic consumption. Furthermore, natural gas enables the increased development of renewable generation by maintaining system stability while exploring new technological alternatives that will allow a continuous response to demand without carbon emissions in the future.
It is essential to plan this transition with a systemic and global focus on the economy's sustainability, including measures to generate new green jobs to reduce the impact of this change on workers and communities.
In this context, developing complementary services is crucial to support the increased use of renewables. These services will provide stability and flexibility to the system continually.
It is also a priority to expedite the operation of projects in the Transmission Plan. Regulatory and managerial changes are urgently needed to accelerate the bidding and awarding of investments. Without rapid transmission development in the country, unlocking the energy potential is impossible.
Climate change will bring greater challenges to Peru regarding water resources, which contribute to over half of electricity generation. Promoting unconventional renewable generation will play a crucial role in mitigating these changes, providing greater energy autonomy and resilience.
The opportunity to become a country with a decentralized renewable matrix and an energy exporter depends on creating a new productive chain. Developing the infrastructure for energy generation, transformation, storage, and transportation will allow us to maximize Peru's natural conditions.
Finally, green hydrogen emerges as a means for Peru to export energy globally. Low-cost Renewable Energies determine the competitiveness of green hydrogen as a clean and flexible energy vector. Peru has all the conditions to produce competitive renewable energy, transform it, and export it globally through green hydrogen.
We are in the most crucial decade to take action against climate change. In line with the global Paris Agreement, Peru has undertaken the Commitment to reduce carbon emissions by 40% by 2030 and achieve net-zero carbon by 2050. Companies from all sectors, as well as citizens, are part of this global Commitment, and we must act now.
The combination of elements described in these paragraphs would lead Peru towards a future where Peruvians benefit from low electricity costs, decarbonize our economy, and contribute to reducing emissions in other regions.
The opportunity to become a country with a decentralized renewable matrix and an energy exporter depends on creating a new productive chain. Developing the infrastructure for energy generation, transformation, storage, and transportation will allow us to maximize Peru's natural conditions.
Finally, green hydrogen emerges as a means for Peru to export energy globally. Low-cost Renewable Energies determine the competitiveness of green hydrogen as a clean and flexible energy vector. Peru has all the conditions to produce competitive renewable energy, transform it, and export it globally in the form of green hydrogen.
We are in the most crucial decade to take action against climate change. In line with the global Paris Agreement, Peru has undertaken the commitment to reduce carbon emissions by 40% by 2030 and achieve net-zero carbon by 2050. Companies from all sectors, as well as citizens, are part of this global commitment, and we must act now.
The combination of elements described in these paragraphs would lead Peru towards a future where Peruvians benefit from low electricity costs, decarbonize our economy, and contribute to reducing emissions in other regions.
