Peru's $960 Million Program Targets 91% Electricity Coverage By 2012

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Although the national power grid covers 75% of Peru's long and narrow territory there are still seven million Chileans, out of 27 million, without access to modern energy services.

Since 1993, a government program has been targeted at bringing power to 91% of the country by 2012, by means of 33 new transmission lines, 243 electrical networks, and 60 hydro generators. Peru has around 6,000 MW of installed generation capacity. 50% of the power is generated by hydroelectric stations and the balance by diesel and fuel oil. Unpredictable rainfall patterns cause severe fluctuations in hydropower output. With these spikes and troughs in mind the mines and energy ministry is attempting reduce dependence on hydro generated power and to use natural gas and renewable sources of power.

Elements completed in the program's objectives are 2,447 kilometers of transmission lines, 13,895 kilometers of small grid networks, 229 hydro and thermo generators, 277 kW of hydroelectric generating capacity, 30 solar panel projects with 77 kW capacity and two pilot wind projects with a total of 700 kW capacity.

The targets are 2,928 kilometers of transmission lines, 26,567 kilometers of small grid networks, 7,277 of hydroelectric generating capacity, 4,680 of thermoelectric capacity, 6,100 kW of solar capacity and 6,200 kW of wind capacity.

The government has given $67.1 million to invest in rural electrification in 2003. This figure excludes the Antamina and Pasco departments that could add a further $25 million to the total budget. The rural electrification program will require $960 million through 2012 according to the mines and energy ministry. It is reported that the government is negotiating with the Canadian government for a $263 million loan to finance the program. Funds will be targeted at departments such as Cajamarca that has only 36% electricity coverage and San Martin and Loreto where coverage is below the national average.

Almost the whole of Peru's electricity sector is government owned but the government is backing private power projects and plans to sell state owned generators, distributors and transmission companies.

Several possibilities are being considered for the use of Peru's own natural gas. The Camisea natural gas field is the largest in South America and is estimated to contain around 10 trillion cubic feet of gas. Contracts have been signed for the use of the gas and an $8.5 contract has been awarded to conduct a feasibility study for the proposed LNG facility. Opportunities are said to be opening up for the international oil and gas equipment industry and hopefully for combined cycle generators for domestic electrical power production.