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Supporting a Peruvian Energy Transition through Distributed Generation

On February 23, 2017, CCAP and Peruvian non-profit Libélula co-organized a workshop on distributed generation in Peru, hosted by the Peruvian Ministry of Environment in the framework of the Support Project for Climate Change Management (Proyecto de Apoyo a la Gestión del Cambio Climático) that fosters INDC implementation in the country. Complementing ongoing work between the two organizations to analyze and develop recommendations to support distributed renewable energy in Peru, the workshop involved a variety of government ministries, energy sector regulators, private sector actors, nonprofits, and other key stakeholders. Presenters such as CCAP’s Bill Tyndall, the Chilean Ministry of Energy, and German development agency GIZ shared public policy and private sector experience in promotion of distributed generation.

The workshop helped inform Peruvian stakeholders who are currently developing relevant public policy –in 2015 the country passed a legal decree that affirmed citizens’ rights to generate their own electricity with renewable energy and inject the excess generation into the grid. The Ministry of Energy and Mines is currently in the process of designing the implementing regulations that, if designed correctly, can enable a transformation of how electricity is generated and used in Peru in a way that reduces GHG emissions and help the country achieve its INDC.

Source: Libélula

As CCAP CEO Bill Tyndall highlighted, distributed generation is just one component of an effective system of distributed energy resources, and can complement the adoption of advanced energy efficiency technology, demand-side management, and storage technologies. These technologies mutually reinforce each other, and expand the potential benefit that distributed energy resources can provide to countries aiming at reducing emissions. Innovation continues to drive down costs such that many renewable energy technologies have become cost competitive with grid-produced electricity, and the gains may continue to grow from there. In order to take advantage of the new technologies and their benefits to electric customers and the energy system, governments need to ensure that regulations and public policy create an environment in which these technologies can thrive.

Distributed renewable energy can also provide Peru with a host of benefits, beyond the environmental impacts of zero-emission generation. For one, distributed renewables and mini grids offer one a key opportunity to expand modern energy access to areas too remote for grid expansion in the short term. Distributed generation can additionally improve the quality of service in connected areas with poor quality of service. Furthermore, distributed generation can improve the resilience of a country that relies heavily on generation from large hydroelectric plant for its power, in the fe of changing precipitation and weather patterns.

For the past several months, CCAP has been providing analyses on alternative approaches to encouraging distributed solar, working closely with local NGO Libélula. These efforts have principally involved analysis of international experiences, estimates of economic viability of distributed generation systems, review of the regulatory environment, and engagement with public and private stakeholders. This project is in the process of concluding its current phase, but CCAP looks forward to continue to engage with Libélula and the government of Peru as part of the Mitigation Action Implementation Network as the country takes ambitious action to achieve its Nationally Determined Contribution and transform its energy sector.


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