Power sector in 2030
Renewable energy sources already make up 60% of Peru’s power generation. Roughly 55% comes from hydropower and the remaining 4% from solar and wind (2019). The government aims to increase the share of solar and wind in the power generation to 15% by 2030. 1.5°C compatible pathways would require the renewable energy share to be around 95-98% by 2030. There is room for improvement in Peru’s power sector targets. However, it is very likely that the country would require significant international support to achieve this outcome.
1.5°C compatible pathways would require gas to be phased out from the power sector between 2033 and 2035. However, Peru continues to expand the use of fossil gas in the power and other sectors through, for example, the relaunch in January 2023 of the construction of the gas pipeline in the south of Peru.
Towards a fully decarbonised power sector
On a 1.5°C compatible pathway, Peru’s power sector reaches full decarbonisation by the mid-2030s. Decarbonisation is made possible by a gas phase-out in the early 2030s.
Renewable energy made up 60% of Peru’s power generation in 2019. Ramping up renewable energy such as solar and wind will be the key driver of the power sector decarbonisation. It will also reduce the reliance on carbon dioxide removal approaches. For 1.5°C pathways, Peru would need to reach 100% renewable power production by 2035. Such a rapid scaling up of renewables and phasing out of fossil fuels will require considerable international support.