![Peru Peru](https://cdn-www.bnamericas.com/img/flags/PERU.jpg)
Lima power supply call falls through on demand risk, renewables
![Lima power supply call falls through on demand risk, renewables](https://cdnimg.bnamericas.com/kMBtFFOExoTNiIOnXhXynPYfObBBEdSuXZWNNkHPHhoztbXobdTuqvPfWyavtPSR.png)
Peruvian power distributor Luz del Sur, which serves Lima, cancelled plans to procure electricity for supply to the regulated market.
The company announced the call three months ago for 15-year power purchase agreements starting in 2028. Current contracts expire in 2027.
“Despite the new market conditions, demand risk continues to be assigned to Luz del Sur,” the company said in a letter to energy and mining regulator Osinergmin, explaining its decision after receiving observations from the watchdog to adjusted reference terms.
“Osinergmin does not promote competition for the market for the entry of RER [non-conventional renewable] generation plants,” it added.
Luz highlighted that the process had yet to be launched and that there had been no expressions of interest from third parties.
RISK
Osinergmin did not entertain proposals assigning demand risk to generation, according to Luz, which said the regulator did not accept to include as a commercial condition that the contracted power consider the seasonality of Luz’s regulated market.
Luz added that the watchdog did not accept that a distributor could reduce contracted power when regulated users migrate to the free market, nor transfer part of the fixed contracted power to variable power due to regulatory changes or extraordinary situations such as COVID-19.
RENEWABLES
The distributor also called out Osinergmin for not accepting that Luz award half of required capacity to RER plants.
In addition, the company said the regulator proposed factors for updating awarded firm prices that favor non-renewable technologies, as these are the only ones that depend on international prices.
Luz argued that Osinergmin’s decisions go against law 28832, which governs the guarantee of efficient power generation development.
Osinergmin did not immediately respond to a request for comment, and Luz did not immediately respond to a request for comment regarding its electricity procurement requirements.
In recent weeks, Enel Distribución Perú, which also serves Lima, awarded contracts in its call to secure electricity for supply to regulated users in 2027-30.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Electric Power (Peru)
![Permitting advances for Peru renewable energy projects totaling 500MW](https://cdn-www.bnamericas.com/img/sectors/electricpower_2.jpg)
Permitting advances for Peru renewable energy projects totaling 500MW
The largest of the proposed plants is a 251MW solar park in the southern region of Moquegua.
![Actis Announces Launch Of Orygen And New Ceo Following Acquisition Of Enel Generación Perú](https://cdn-www.bnamericas.com/img/sectors/electricpower_1.jpg)
Actis Announces Launch Of Orygen And New Ceo Following Acquisition Of Enel Generación Perú
Launch follows acquisition of 2.2GW diversified generation platform Enel Generación Perú, the Peruvian subsidiary of Italian energy giant Enel
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Electric Power (Peru)
Get critical information about thousands of Electric Power projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Amazonas hydro power plant
- Current stage:
- Updated:
3 days ago
- Project: Chontayacu Bajo hydroelectric project
- Current stage:
- Updated:
2 days ago
- Project: Santa Lorenza I hydroelectric plant
- Current stage:
- Updated:
3 days ago
- Project: Pariñas - Nueva Tumbes transmission line
- Current stage:
- Updated:
3 days ago
- Project: Ayllu wind farm
- Current stage:
- Updated:
4 days ago
- Project: Expansion of the San Gabán II Hydroelectric Plant
- Current stage:
- Updated:
4 days ago
- Project: Matarani solar park
- Current stage:
- Updated:
5 days ago
- Project: Tres Quebradas wind farm
- Current stage:
- Updated:
1 week ago
- Project: Santa Isabel Solar 1 and 2 photovoltaic generation project
- Current stage:
- Updated:
1 week ago
- Project: La Planicie-Industriales Transmission Line and Associated Substations
- Current stage:
- Updated:
2 weeks ago
Other companies in: Electric Power (Peru)
Get critical information about thousands of Electric Power companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Isotron Perú
- Company: Enel Perú S.A.C.  (Enel Perú)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Cobra Perú S.A.  (Cobra Perú)
-
Cobra Peru S.A. is the local unit of Spanish firm Cobra Instalaciones y Servicios and is involved in the engineering and construction business. The 90MW Tres Hermanas wind compl...
- Company: SOWITEC Energías Renovables de Perú S.A.  (SoWiTec Operation Perú S.A.)
-
Sowitec Energías Renovables de Perú S.A. (SoWiTec Operation Perú S.A.) operates as a subsidiary of German wind developer SoWiTec, focused on the renewable energy industry. In 20...
- Company: Tarucani Generating Company
-
The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...
- Company: Zapote S.A.C.  (Zapote)
- Company: Ignis Energy Perú S.A.C.  (Ignis Energy Perú)
-
The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...