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Perus Congress has approved by majority the amendment of Law 28,832, "to ensure the efficient development of electricity generation, allowing all generation technologies available in the country (hydroelectric, thermal, solar, wind, biomass and others) to compete transparently in electricity supply tenders," according to a statement from the Ministry of Energy and Mines (MINEM).
The initiative, which has been long promoted by the Peruvian Association of Renewable Energies (SPR), "will prevent the upward trend in electricity rates from continuing in the future, previously warned by the Supervisory Body for Investment in Energy and Mining (Osinergmin), as a result of the mechanisms of a more competitive market with a greater supply of generation," it states.
The time-based tendering scheme proposed in this legal proposal will ensure the supply of electricity 24 hours a day, 365 days a year through the joint operation of all the technologies participating in these supply tenders, each according to its own characteristics.
According to the MINEM, “the purchase of power or energy through tenders does not affect the income that distribution companies should receive, because the electricity rate paid by all regulated users already includes an amount known as the Added Distribution Value, which ensures the corresponding remuneration for said companies.”
Electricity supply tenders
The legal norm, which still needs to be promulgated by President Dina Boluarte, establishes the framework for distribution companies to carry out short-term (up to 3 years), medium-term (up to 5 years) or long-term (up to 15 years) electricity supply tenders, to cover the amounts of power and/or energy they consider necessary to ensure supply to their regulated users. In other words, it is stated that distribution companies will carry out these tenders according to their requirements.
The ministry notes that Perus electricity generation depends on water and natural gas for over 90% of its energy needs, "and in light of this, new investments must be called for to take advantage of the countrys potential for non-conventional renewable energy; and also for energy security reasons, since the country is suffering from a water deficit as a result of climate change."
In an interview last month, SPR President Brendan Oviedo stated that “the new bill will allow eight million Peruvian families to pay 16% less on their electricity bills.” The association welcomed the reform promoted by the Ministry of Energy and Mines, and urged the Executive Branch to “move forward in the promulgation of this great measure for the benefit of all Peruvians.” |
