In 2019, around 60% of Peru’s power was generated from renewables – mainly from hydropower. However, only about 4% of Peru’s power came from solar and wind generation.6
While coal plays a very small role in Peru’s power supply (1% of the power mix in 2017), natural gas accounts for approximately 38% of its power production.6 1.5°C compatible pathways show that coal should be phased out in Peru as quickly as possible and gas between 2033 and 2035. However, no phase out dates for these fossil fuels have been announced by the government. To achieve these phase out dates will require some significant international support, on top of the measures that Peru needs to undertake through its own resources.
Peru had originally planned to contract a major natural gas project to service seven regions, but this fell through in July 2021 due to lack of economic and technical trust in the feasibility.7 Continued use of natural gas for power production in the country brings a high risk of stranded assets and lock-in in a carbon intensive emissions pathway.
Full decarbonisation of the power sector will require a minimum of 99% renewable power generation by 2035.
Peru’s power sector should be fully decarbonised between 2031 and 2035 to be on track with a 1.5°C compatible pathway. International support may be needed to fully achieve these emissions reductions on this time frame.
Key power sector benchmarks
Renewables shares and year of zero emissions power Including the use of BECCS
- 2030 94 to 98% Renewable share
- 2031-2035 Zero emissions power
- 2035 99 to 100% Renewable share