Peru must double energy investment, says former energy minister

Current investment levels in Peru‘s energy sector, totaling $12.6bn, will be insufficient to meet growing demand over the next ten years, warns Jaime Quijandria, the former energy and mining minister.

According to Quijandria, who is now a partner at Laub & Quijandria, investment levels need to reach $26.5bn between now and 2020, with the money financing both natural gas and electricity projects, reports local daily El Comercio.

Commenting on this, Eleodoro, an associate consultant at Laub & Quijandria, said COES, the System Economic Operation Committee, had warned of a 980 MW shortage in efficient power generation, which will ultimately lead to higher energy costs and higher rates.

Mayorga added that this level of deficit means that we would have to install a hydroelectric plant the size of the Mantaro complex, which currently represents a fifth of Peru’s installed capacity.

Quijandria also highlighted the potential impact on Peru’s projected annual economic growth of 6 per cent. To protect this, he said, public investment in the energy sector will have to increase from the current 5 per cent to 20 per cent.

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