Peru Energy

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Chapter | Mining from The Report: Peru 2017

The mining sector can be described as one of the main engines of the Peruvian economy as it accounts for 12% of total GDP. It creates direct employment for 174,000 workers and indirectly accounts for another 1.5m jobs. In 2016 mining exports totalled $23.8bn – consisting of 65% of the country’s total merchandise exports. The medium-term outlook is certainly positive, with a range of new mines...

Over the last two decades Peru has been one of the fastest-growing economies in the region. Remarkably resilient to global headwinds, positive GDP growth has continued despite the end of the commodities boom. Yet the growth rate has slowed and the initial impetus of a first wave of structural reforms has faded. The question now is whether the current administration can address problems, implement further reforms and re-accelerate the economy.


To what extent can the country balance domestic production and demand, given the constraints of declining production?


In 2008 Peru’s energy policy was confronted by a perfect storm. Five years of accelerating economic growth and the commissioning of major mining projects led to a surge in demand for petroleum products and electricity. The pipeline from the Camisea gas field to Lima, completed in 2004, was already operating at capacity, something it had not...


For over a decade, proposals to partly privatise state-run oil firm Petróleos del Perú (PetroPerú) and allow it to return to upstream activities have been debated in Peru’s Congress. Following the privatisation of the oil industry in the early 1990s, the company has been restricted to refining, transporting and commercialising petroleum...


Although Peru is not subject to international treaties binding it to reduce carbon emissions, in May 2008 the government announced that the country would source up to 5% of its energy from non-conventional renewables, including wind, solar, biomass projects and small-scale hydroelectric projects of under 20 MW. Given that the country’s mega...

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