Peru to further define deployment of distributed generation

Peru’s energy and mines ministry opened consultation for the proposed regulation of distributed generation (DG) connected to the power distribution grid.

The norm aims to increase the contribution of DG by establishing connection, installation, operation and sale guidelines, as called for in legislative decree 1221 to improve electricity distribution.

According to critics, the lack of specific regulation has stymied the rollout of DG. In addition, issues related to pricing, payment and hesitancy on the part of some distributors, among other factors, have stalled regulatory advancement.

Local power industry executive and academic Darwin Padilla Gutierrez said that “the lack of tax and financial incentives may deter potential investors from investing in distributed generation.”

He also highlighted the lack of consumers’ familiarity with the technology as an obstacle.

The proposal and supporting arguments are available in the Documents box in the top right corner. Comments may be submitted to prepublicaciones_DGE@minem.gob.pe

The ministry’s smart grid power distribution roadmap highlights that, “distributed generation constitutes a fundamental part within the smart grid, as it allows the customer to actively participate in the electrical system.”

Also read Peru power distributor turns to distributed generation to help cover demand