Peru's Potential as Hydro Power Plant Developer and Electricity Exporter Attracts Investors Toward its Electricity Industry, Finds Frost & Sullivan
- Low costs of production and strong government support give Peru the opportunity to become the regional electricity hub
BUENOS AIRES, Argentina, Nov. 5, 2012 /PRNewswire/ -- Peru has the third highest hydro power generation potential in South America and oil reserves estimated in 532.7 million barrels. The substantial Camisea natural gas reserves and significant demand from neighboring countries could turn the nation into a regional hub of electricity production.
New analysis from Frost & Sullivan (http://www.energy.frost.com), 2011 Updated Overview of the Peruvian Electricity Industry, finds that the industry earned revenues of $1.02 billion in 2011 and expects this to reach $1.45 billion in 2016, at a compound annual growth rate of 5.5 percent. It had an installed capacity of 7,986 MW in 2011 and is expected to grow to 11.7GW by 2016.
Peru's strong economic growth has spawned more development, which, in turn, has increased electricity demand and initiated rural electrification projects. The Government's attempts to improve access to electricity played a major role raising electricity consumption, as well as driving the uptake of electricity supply equipment. On the back of these efforts, rural electrification shot up from 80.0 percent in 2008 to almost 92.0 percent in 2011.
"The main areas of growth for participants and industry entrants are gas, hydro, renewables, transmission and distribution (T&D) infrastructure, as well as maintenance, repair, and overhaul (MRO) for existing power stations," said Frost & Sullivan Industry Analyst Dominic Goncalves.
However, project delays, lack of regulations, tariff structure issues, and a maintenance backlog, which is currently narrowing the reserve margin, can hold back pace of growth. The tariff structure has recently been clear and stable but more strategic planning in the energy sector will be necessary to attract foreign investment.
"It is imperative that Peru develops a robust transmission system to facilitate planned generation projects," noted Goncalves. "Favorable regulations and higher foreign investment will be needed to set these projects in motion."
The proposed development of an interregional electricity industry will bolster Peru's electricity sector and its economy. Electricity production in Peru is much cheaper than in the neighboring countries; however, the industry requires more generation capacity to meet both internal and external demand.
"The Peruvian Government aims to make the country a regional electricity hub, exporting to Chile, Brazil, and Ecuador," added Goncalves. "In late 2011, Peru signed an agreement with Brazil to export up to 6,000 MW of electricity; initiatives such as these are likely to drive the Peruvian electricity industry till 2016."
If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at email@example.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
2011 Updated Overview of the Peruvian Electricity Industry is part of the Energy & Power Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of the Brazilian Electricity Market, The Argentina Wind Power Generation Market, and Argentina and Chile HV Transmission and Distribution Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
2011 Updated Overview of the Peruvian Electricity Industry
Corporate Communications – Latin America
SOURCE Frost & Sullivan
More by this Source
Top Manufacturing Leadership 100 Award Winners Honored at Gala Celebration
17 May, 2013, 18:15 BST
Coty Inc. Wins 2013 Manufacturing Leadership 100 Global Value Chain Award
16 May, 2013, 20:40 BST
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos and customised feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
Until you hear the full story, why would you invest?
Making sound investment decisions can be difficult. You can study the figures and read the analyst recommendations, but how do you really know the story behind company strategy? How can you get answers to your questions?
The Private Investor Network helps you to reach an informed decision on the stocks you pick. Interactive presentations from UK listed companies give you the kind of access previously enjoyed only by the big fund managers. And with keynote speeches from industry experts, downloadable content and an investor lounge where you can swap tips with your peers, you can invest with confidence.
For more information, and to register for FREE, visit us at www.privateinvestornetwork.co.uk
Get content for your website
Enhance your website's or blog's content with PR Newswire's customised real-time news feeds.
Contact PR Newswire
Send us an email at MarketingUK@prnewswire.co.uk or call us at +44 (0)20 7454 5382
Become a PR Newswire client
Request more information about PR Newswire products & services or call us at +44 (0)20 7454 5382