Peru Plans to Introduce Electricity Regulatory Reform Regulations in 2027

en.Wedoany.com Reported - On October 29, the Ministry of Energy and Mines (MINEM) of Peru announced that it is advancing a comprehensive reform of the regulatory framework for the electricity sector to accelerate the implementation of power projects, promote new investment, and improve the reliability of electricity supply. Roberto Tamayo, Director General of the Directorate General of Electricity of the Ministry, stated during the EXPO PECIER FISE 2026 event that the relevant reforms are expected to form a package of regulatory proposals in 2027. Currently, the selection of consultants responsible for formulating the reform proposals has been completed.

One of the reform priorities is simplifying the approval procedures for power projects. Currently, power infrastructure projects typically require multiple procedures, including concessions, environmental assessment, prior consultation, and social conflict management, involving different government agencies. MINEM is studying the adjustment of certain approval authorities, for example, changing specific concession matters from ministerial resolutions to resolutions of the Director General of Electricity, in order to reduce administrative levels and shorten the time required for project approval and implementation.

The coordination of power generation and transmission construction is also an important part of this reform. MINEM plans to re-examine the existing portfolio of power projects, study the conditions for promoting new generation facilities, including hydropower projects, and assess the need to increase generation capacity in northern and southern Peru. The Ministry will also analyze transmission planning to improve the alignment between line construction arrangements and future generation demand. Officials noted that delays in transmission projects may compress the reserve margin of the power system and increase dependence on higher-cost energy sources such as diesel.

As the share of solar and wind power in the electricity system increases, MINEM is also advancing research on regulations for ancillary services and distributed generation, and the electricity procurement regulations have also entered a more advanced stage of review. The relevant regulatory proposals are expected to be introduced in 2027, and specific investment scale, number of projects, and targets for shortening approval cycles have not yet been announced.