Fossil fuels made up 75% of Peru’s total energy supply in 2018. The majority is made up of oil used for fossil fuel vehicles in transport. Natural gas also made up a considerable portion of the TPES (28%) in 2018.
In the power sector, roughly 60% of Peru’s power production already comes from renewable sources, with hydropower accounting for 55% of power production alone. However, natural gas still accounted for 38% of power production in 2017. No gas phase-out date has been set by the Peruvian government.
Liquefied natural gas in particular is being promoted in the country, with increasing usage in the transport and residential energy sectors through projects financed by the government and the Peruvian Development Bank., The government of Peru sees improving access to natural gas as a key step to increasing social inclusion and reducing energy poverty in rural areas., The continued development of natural gas in the country brings high risk for stranded assets and lock-in to emitting technologies in the future.