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Peru plans renewable energy auctions next year

Viaje a Ayacucho, Peru (source: flickr/ Lorena Flores Agüero, creative commons)
Francisco Rojas 19 Nov 2014

Bloomberg details that Peru has attracted USD $3.4 billion in renewables since 2006 and wants to expand the weight of renewables due to increases in power demand and to cut down on fossil fuel dependancy.

In the coming UN global climate conference in Lima, the Peruvian government is expected to announce a renewable-energy auction.

According to a recent post from Bloomberg, “The auction will be held in the first half of next year and will allow bids for solar, wind, biomass and geothermal energy projects, said Pedro Gamio, energy coordinator for the United Nations-organized climate talks.”

A the moment, 50 per cent of the country’s energy production comes from fossil fuels and the remaining 50 per cent from hydro. The current government is poised to increase the relevance of renewables to decrease the dependancy on diesel and coal.

Other concerns are the increase of the demand in power, which is a crucial opportunity to develop and foster renewable energy. According to Bloomberg New Energy Finance, cited in the article, “power demand in Peru increased 5.4 percent in 2013, while gross domestic product gained 5.8 percent”

The country has successfully attracted USD $3.4 billion in renewables since 2006, according to the aforementioned source and “auctions for renewable energy will give lenders more confidence that the industry will continue to grow.”

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Source: Bloomberg