Peru remained the fifth most attractive country in Latin America to invest in renewable energy, according to the latest Renewable Energy Country Attractiveness Index 2019 (RECAI), prepared by the consulting firm EY Peru.
With this result, only Argentina, Chile, Brazil and Mexico surpass Peru at the regional level, while the overall ranking is headed by China, followed by the United States, France, India and Australia.
Beatriz De la Vega, EY Peru's Energy lead partner, indicated that although investment in projects that entered the National Interconnected Electric System (SEIN) tripled in 2018, there are still few incentives for the use of or investment in renewable energies.
"At the fiscal level, the main (incentive) is focused on the accelerated depreciation regime; it would be necessary to review the import tariffs on equipment and parts, as well as other incentives and tax benefits existing in other neighboring countries to encourage investment," said the executive.
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He added that as a result of this lack of incentives for investments, the initial goal of 5% of participation of non-conventional renewable energies in the energy matrix has not yet been achieved.
Power generation
Vega specified that during 2018, eleven power generation plants with a total installed capacity of 519.54 MW entered into commercial operation, representing a total investment of US$ 735.4 MM.
Of this group, six were mini-hydro plants that individually injected power outputs of no more than 20 MW and together represented an investment of US$ 173.8 MM; one biomass plant with an output of 2.40 MW which represented an investment of US$ 2.6 MM; one wind power plant with a capacity of 132.30 MW which represented an investment of US$ 165.8 MM; and two solar power plants with a combined capacity of 184.48 MW which represented a total investment of US$ 217.4 MM.
