Francisco Sagasti, interim President of Peru, has introduced a bill to the Peruvian Congress to provide investment incentives for renewable energy resources. The proposed legislation would, according to those bringing it forward, promote employment, guarantee energy supply, and fulfil international greenhouse reduction pledges.
The initiative calls for the Ministry of Energy and Mines to set minimum targets for renewable energy resources, excluding hydro, of 20 per cent by 2030 and 50 per cent by 2040. The current government target is 15 per cent by 2030. As of December 2020, solar and wind combined accounted for 5 per cent of Peru’s installed generation capacity.
The bill proposes recognising firm capacity of solar and wind plants, the early recovery of the general sales tax, and inclusion of renewable energy resources in regulated market auctions. Other proposals in the bill include the promotion of geothermal power in the southern regions of Arequipa, Moquegua, and Tacna, which would help decentralise electricity production.