Fossil fuels made up 75% of Peru’s total energy supply in 2018. The majority of this share comes from oil used for fossil fuel vehicles in the transport sector. Fossil gas produced 28% of the total energy supply.
In the power sector, roughly 60% of Peru’s electricity is already generated from renewable sources, with hydropower being the main renewable energy source with a 55% share. However, natural gas still accounted for 38% of the power production in 2017. Peruvian government has not set a phase-out date for fossil gas.
Liquefied natural gas (LNG) 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 fossil gas as a key step to increasing social inclusion and reducing energy poverty in rural areas., However, the continued development of fossil gas in the country brings high risk of stranded assets and a lock-in of emitting technologies in the future.