While Peru maintains one of the largest renewable energy portfolios in South America under development, the new rotation of authorities in the Ministry of Energy and Mines (MINEM) raises doubts again about the country's ability to transform that potential into concrete projects.
The recent appointment of a new Deputy Minister of Electricity prompted a strong warning from Brendan Oviedo Doyle, partner at DLA Piper Peru and specialist in energy regulation, who directly linked institutional instability with the paralysis of strategic investments for the Peruvian electricity system.
"The electricity sector, a critical infrastructure that supports absolutely all productive activity in the country, has become one of the biggest victims of the Peruvian State's improvisation," the expert stated via LinkedIn.
The concern arises at a particularly sensitive time for the market. Peru is going through a period of political uncertainty associated with the electoral process and has several regulatory definitions pending that are considered key to the expansion of renewable energy generation, energy storage, and the modernization of the electricity market.
More than USD 12 billion awaits political signals
Behind the institutional debate lies a figure that worries developers, investors, and financiers. According to data from the Peruvian Renewable Energy Association (SPR), there are currently 58 renewable energy projects ready to move forward, representing more than 12.5 GW of potential installed capacity and over USD 12 billion in investment , provided there are clear regulatory signals from the government. The portfolio includes solar and wind projects distributed across different regions of the country, many of which have been undergoing administrative, environmental, and regulatory processes for years.
In the specific case of solar energy, information compiled by Energía Estratégica from Osinergmin's database shows that there are 65 photovoltaic projects in the permitting process, totaling 13,116 MW, all with approved pre-operational studies. However, only 11 projects, equivalent to 2.3 GW, have received final approval to proceed with construction, reflecting the gap between project development and actual implementation.
The situation is similar in the wind energy sector. Peru has over 14.8 GW of wind power in various stages of development, of which approximately 8.9 GW already have approved Pre-Operational Studies, while another 5.2 GW are still undergoing regulatory processes. This figure contrasts sharply with an installed wind capacity that barely exceeds one gigawatt.
Pending regulations and projects on hold
One of the main concerns of the sector is the delay in the implementation of Law 32249, regulations intended to reactivate the electricity supply tenders carried out by the distributors and considered fundamental to make new long-term contracts for renewable energies viable.
Although the regulation was submitted for public consultation and received technical comments months ago, its final publication is still pending.
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"Personally, I don't see much chance of it being published under this government, although I hope I'm wrong," Oviedo had previously warned when analyzing the Peruvian pre-electoral context.
The lack of clarity also extends to the new ancillary services market, a reform considered strategic for the future of the electricity system.
The sector is awaiting clear economic signals for services such as frequency control, voltage regulation, operating reserves, and grid flexibility. The absence of these incentives limits the development of emerging technologies like battery storage systems, which are poised to play a central role in integrating larger volumes of solar and wind power generation.
Concern for technical continuity
The expert's warning is not limited to the current election cycle. According to Oviedo, one of the country's main structural problems is the lack of continuity in public decision-making.
"While Peru discusses how to grow, attract investment, or develop mining or industry, we continue to neglect precisely the sector that makes all of that possible," he said.
The specialist argues that the constant succession of ministers, deputy ministers, and technical officials creates a dynamic where regulatory projects advance or stall according to the priorities of each administration, hindering long-term planning.
The situation is particularly complex for a sector whose projects typically require investment horizons of between 20 and 30 years and financing processes that depend on regulatory stability.
According to the lawyer, the consequences are already being felt in the market. "As a result, we see stalled investments, a lack of regulatory guidance, and a country that is beginning to jeopardize its own energy security," he stated.
The warning is particularly relevant considering that Peru is seeking to increase the share of renewable energy, strengthen the transmission network, and support the growth in electricity demand driven by new mining and industrial projects.
In this context, political uncertainty no longer appears solely as an institutional problem, but as a factor that could condition the execution of more than 12.5 GW of renewable projects and more than USD 12 billion of potential investments that are currently awaiting regulatory definitions and long-term signals.
As Oviedo summarized in his publication, the challenge is not only about appointing new authorities, but about building an energy roadmap capable of surviving political changes and offering predictability to those who must make investment decisions for the coming decades.