Peru was placed 11th among the 55 countries assessed in Climatescope 2014 with a score of 1.50. Compared to its Latin American and Caribbean neighbors, the country ranked 5th.
Peru’s $207bn economy grew a firm 5.8% in 2013, resulting in increasing power demand. The country’s relatively low electricity prices mean that the market for renewables is dependent on government-driven renewable energy auctions. In 2013, 240MW was contracted by this method from 19 small hydro projects at an average price of $56.55/MWh. That same year, Peru announced its first off-grid renewable energy auction. This is to be concluded in 2014 and will seek PV systems to expand electricity coverage to 500,000 users in rural and isolated areas of the country.
From 2006 to 2013, the country attracted $3.4bn in clean energy investments. In 2013, $773m was invested, with the majority going to wind and small hydro. Solar, which saw more than $400m invested in 2011 and 2012, is awaiting opportunities in off-grid and in future auctions.