More than 10,000 MW identified in the plans and assets of eight energy companies, compared to a national portfolio of 29 GW currently in development , underscore the magnitude of investment opportunities in Peru. However, the lack of long-term contracts and disagreements regarding upcoming electricity tenders are hindering the development of new renewable energy projects.
During the Future Energy Summit (FES) Peru 2026 , representatives from Acciona Energía, Orygen, Fenix Power, Kallpa Generación, Celaris Energy, Statkraft, EDF Peru and other companies presented their expansion prospects and discussed the necessary rules to promote new power plants, incorporate battery energy storage systems (BESS) and facilitate access to financing.
The company figures include 3,000 MW from Orygen, 3,000 MW from Fenix Power, 1,680 MW from Kallpa Generación, and 1,200 MW from Celaris Energy , in addition to projects from Inland Energy/Luz del Sur, Grupo Enhol, EDF Perú, and Yinson Renewables. Collectively, the identified capacities represent between 10,395 and 10,445 MW , although they encompass projects at different stages of development and some already operational assets.
The contrast appears in the estimates of César Butrón, president of the Board of Directors of the Economic Operation Committee of the National Interconnected System (COES) , who warns that the availability of initiatives does not guarantee their materialization.
"Of the 29,000 MW in projects under development, not even 10% will be built," Butrón stated.
According to figures presented by the agency, 5831 MW have a definitive concession , while its implementation scenario towards 2030 contemplates approximately 3000 to 3500 MW of new capacity.
According to the president of COES, the main problem lies not in the lack of interested developers, but in the inability of numerous projects to secure contracts that support their revenue streams and allow them to reach financial closure.
The warning takes on added relevance given the progress of the draft regulations for tenders under Law No. 32249 prepared by the Ministry of Energy and Mines (MINEM), whose regulatory impact analysis file received a favorable evaluation from the Multisectoral Commission for Regulatory Quality.
Who will be able to compete? Energy companies disagree on the new tenders.
The proposal for future tenders contemplates long-term contracts of ten to 15 years , with periods of three to six years between the signing and the start of the supply, and a maximum limit equivalent to 65% of the total demand of each distributor.
For medium-term contracts, the scheme proposes agreements of four to five years, with a ceiling of 40% of demand, while short-term contracts would range from one month to three years, with a maximum of 35%.
One of the main controversies revolves around whether long-term contracts should be reserved for new power plants or allow the participation of existing generation , a difference that pits different business strategies against each other.
"Long-term tenders need to be for new projects only," said Guillermo Grande, CEO of EDF Peru , during FES Peru, warning that allowing the participation of existing facilities, whose investment is already depreciated, could reduce incentives to build new capacity.
For his part, Irwin Frisancho, Commercial Manager of Kallpa Generación , stated: "We must allow competition, let existing energy compete with new energy and price; the resulting better price will benefit the regulated user."
These differences are also reflected in the comments submitted on the draft regulations. According to the preliminary survey by Energía Estratégica, EDF and Ignis Energy Perú proposed conditions aimed at prioritizing new developments, while Kallpa, ENGIE, Statkraft, Fenix Power, Celepsa, Electroperú, and San Gabán advocated for the participation of existing generation capacity.
Another point of discussion is the possibility of contracting energy and power separately , a modification that could broaden the participation alternatives for technologies with different generation profiles.
The draft regulations establish three contracting products: power only, energy only, and power with associated energy. They also contemplate the possibility of acquiring supply by time blocks, with specific rules for economic evaluation and guarantees for participants.
"In our opinion, the tender should allow bidding for hourly supply blocks and also for specific areas," said Jaime Toledo, CEO of Acciona Energía South America, at the FES event.
The executive argues that this structure would allow for increased competition and the incorporation of projects located in areas where electricity prices are currently higher, generating opportunities to reduce the cost of supply.
In its observations on the regulations, Acciona also proposes extending the duration of contracts to 15 or 20 years and increasing the proportion of long-term contracted demand to a range of between 60% and 80%, as a mechanism to improve the predictability of income.
However, Marco Fragale, CEO of Orygen , believes that tenders should be analyzed based on the supply needs of regulated consumers throughout the day.
"Now, regulated customers buy 24-hour power. So, competitive energy must be provided to customers 24 hours a day, not just in a single block," Fragale stated during FES Peru.
The documents analyzed by Energía Estratégica show that Kallpa, Orygen, Celepsa and Transportadora de Gas del Perú propose alternatives that include continuous supply, while other actors defend mechanisms that allow comparing offers by blocks and comprehensive supplies.
Enzo Contreras , country manager for Statkraft in Peru, warns that the outcome of the regulations will also affect opportunities for developers who do not yet have diversified portfolios.
The executive distinguishes between companies that can complement renewable generation with assets from other technologies and those that seek to enter the market without that support.
Consequently, it considers it necessary that the new rules facilitate the entry of participants and avoid creating additional barriers for smaller developers .
For his part, Toledo from Acciona pointed out: "We have to be very careful when there are pivotal companies, large companies, that due to their volume can make offers in which, by conditioning their offers on certain volumes, they leave a group of smaller competitors out."
The concern is linked to the possibility that certain volume-based bids may reduce effective competition and affect the economic results of future awards.
Meanwhile, Juan Elías Salinas, General Manager of Fenix Power , confirms the company's interest in participating in the upcoming calls for bids and emphasizes the importance of contracts to enable new investments.
Continue reading
"The essential element here for building a project is the clients. The clients are the driving force behind the construction of the projects," Salinas stated.
The executive believes that regulated procurement processes represent instruments to financially support new power plants, although he warns that the predictability of commercial conditions will be crucial to obtaining investment approvals.
The need for contracts also explains part of COES's diagnosis. Butrón points out that regulated users represent approximately 45% of electricity demand, compared to 55% for unregulated customers .
The head of the agency believes that the bidding framework alone does not solve the lack of long-term contracts in the large consumer segment, which is also relevant for financing the expansion of generation.
In addition, many distributors have supply agreements that expire between 2030 and 2031 , which could limit immediate calls for tenders, even if regulations move forward.
More than 10 GW among the plans of the main energy companies
Alongside the regulatory discussion, the companies presented their expansion plans, with wind, solar and hydroelectric projects that could be incorporated into the system over the next few years.
"We have 3 GW in priority projects that could go into construction in the next 5 or 6 years. As for the next 3 years, we could have 1 GW of those 3 GW," explained Marco Fragale, CEO of Orygen.
Fenix Power, for its part, has a portfolio of approximately 3000 MW , distributed among projects that are at different stages of development.
Salinas emphasizes that the speed of development of these initiatives will depend on the ability to acquire clients and successfully participate in future procurement processes. He also warns that, according to his assessment, the system has virtually no reserve capacity, a situation that is contributing to rising marginal costs.
Meanwhile, Kallpa Generación has 1680 MW of renewable projects in an advanced stage, close to Ready to Build , distributed among seven initiatives.
Of that volume, 980 MW correspond to four wind projects and 700 MW to three solar power plants , forming a diversified portfolio that could bring new capacity to the system.
"At Celaris Energy, we plan to build and install approximately 1,200 MW by 2030, representing an investment of between $1 billion and $1,200 million, 50% wind and 50% solar," announced Jefry Arce, the company's Operations Manager .
The portfolio includes approximately 600 MW of wind power and 600 MW of solar power , with a forecast of reaching the construction of 40% of that capacity by 2028, equivalent to about 480 MW .
In the hydroelectric segment, Inland Energy / Luz del Sur identifies a pipeline of between 650 and 700 MW , with approximately 350 MW planned to move forward over the next three years.
"Santa Teresa 2, with 280 MW, will be the only hydroelectric project to be developed in Peru in these 3 years," Travezaño stated.
The executive also estimates that the country would need to incorporate around 3,000 MW of additional generation capacity over the next five years , accompanied by approximately 2,000 kilometers of transmission lines .
Grupo Enhol joins this portfolio with the development of the 400 MW ILLA photovoltaic plant , identified among the country's large-scale solar initiatives.
Meanwhile, EDF Peru has 365 MW of hydroelectric power in advanced stages of permitting , distributed between El Jaraza, of approximately 200 MW, and Chunayaku Bajo, of 165 MW .
The company is also developing an additional portfolio of solar and wind initiatives and maintains supply contracts in isolated systems for 11 cities , which are not counted within the 365 MW mentioned.
"We already have two solar generation assets in Peru: one is Matarani (100 MW) and another is under construction, Majes Sol de Verano Phase 1, hoping to find the COD for the first quarter of next year," said Gerardo Torres, Construction Project Manager of Yinson Renewables .
BESS: zero prices, firm power and new tenders for storage
The lack of clear remuneration mechanisms for BESS appears as another condition that could limit renewable development , especially in regions where a strong concentration of solar generation is projected.
"If we put all the photovoltaic energy in southern Peru, we're going to have a problem with the photovoltaic schedule," warns Jaime Toledo, CEO of South America at Acciona Energía , who points out that prolonged periods of zero prices can trigger bank debt acceleration clauses and jeopardize project financing.
From Grupo Enhol, Diego Piqueras Sanz, Hybrid Energy Projects Engineer , identifies storage opportunities for large mining and industrial consumers, primarily due to power savings. He also proposes capacity auctions for BESS (Building Energy Storage Systems) to guarantee stable revenue and improve bankability.
For his part, Enzo Contreras, country manager of Statkraft in Peru , believes that the first opportunities for batteries will be linked to complementary services, while Marco Fragale, CEO of Orygen , calls for mechanisms that adequately remunerate these services.
"A true market for complementary services means not a market where frequency regulation is mandatory and without compensation, but a real market," Fragale states.
Along these lines, Irwin Frisancho, Commercial Manager of Kallpa Generación , proposes defining the recognition of firm power for solar power plants with batteries , while César Butrón, president of COES , considers it necessary to incorporate mechanisms that pay for the availability of storage, beyond synthetic inertia and primary frequency regulation.
The magnitude of this need is reflected in the estimates of Carlos Travezaño, General Manager of Inland Energy / Luz del Sur , who calculates a requirement of 250 to 300 MW of batteries for primary frequency regulation , within storage needs that could approach 500 MW .
These challenges are compounded by transmission restrictions and administrative delays. Juan Enrique Fernández Delgado of Grupo Elecnor calls for regulatory certainty and greater efficiency in environmental permits and easements, while Gerardo Torres of Yinson Renewables warns about the impact of financing delays.
Thus, long-term tenders, BESS remuneration, and regulatory predictability appear as central conditions for converting the more than 10 GW identified among the main energy companies into effective investments, compared to a national portfolio of 29 GW whose execution continues to be conditioned by the lack of contracts and financial closures.
By Energía Estratégica
By Ailén Pedrotti
By Emilia Lardizabal
