Peru’s economy has been growing at a rapid pace over the last decade and is now investment grade. Energy demand has grown at a comparable pace, particularly in natural gas because of new discoveries and a gas pipeline. However, the pipeline has reached capacity and the author argues that mini hydro projects are well positioned to take up the pace. The Peruvian government has provided a fast track solution for projects below 20 megawatts, and the country’s Andean landscape allows for significant locations and development opportunities.
Invited Contributor: John Harman authored this piece exclusively for The Review. He is chairman of Central Hidroeléctrica Langui S.A., with more than 20 years experience in the small hydroelectric market in Peru.