Renewable energies: a necessary change with a vision for the future to ensure sustainability

Víctor Lozano

AlfaroPeriodistavlozano@editoraperu.com.pe

Thus, electricity is the basis for the development of countries. Its generation in Peru has always been linked to rainfall (hydroelectricity) or the use of fossil fuels (thermoelectricity).

However, new trends closely linked to climate change have allowed others to join this process, specifically renewable energies.

"Renewable energies are the new way forward in the world. In Peru we have very rich sources, but it is necessary to promote a real change to use them responsibly", said the president of the Peruvian Association of Renewable Energies (SPR), Brendan Oviedo in a report published today in the Economika supplement of El Peruano newspaper .

The executive asserted that the Peruvian electricity sector is dependent on water and gas. "Due to climate change there have been variations in rainfall patterns. This means that it will probably rain very little or rain a lot and, in both cases, this has a direct effect on the hydroelectric power plants," he said.

According to him, if it rains a lot, the plant's production stops due to sedimentation; otherwise, no electricity can be generated. The answer to this situation has been electricity generation with natural gas; however, this resource is not durable.

"Thus, renewable energies are the real feasible options for energy development, but it is necessary to promote them and establish the appropriate regulations for their correct implementation," said the SPR representative.



Potential

Peru has a great potential of non-conventional renewable energy resources: solar, wind, geothermal, biomass, mini hydroelectric up to 20 megawatts (MW), and tidal; all of them of world quality and not exploited and distributed in the different areas of the national territory.

The non-conventional renewable energy potential that our country has is approximately 10 times more than the installed capacity; that is 130,000 MW.

"We have renewable resources for local consumption and export. To guarantee a sustainable future that responds to the needs of the population, means generating and/or improving regulatory and policy frameworks that promote investment in electricity generation projects from renewable resources, using various technologies available according to the national potential", said the general manager of Negocios Globales Inteligentes (Negli SAC), Rosendo Ramírez.

According to the report Renewable Energies: Experience and Perspectives on Peru's Route to the Energy Transition, prepared by the Supervisory Body for Investment in Energy and Mines (Osinergmin) in 2019, Peru has a technical usable wind power capacity of 20,4500 MW; 25,000 MW of solar energy; 70,000 MW of hydroelectric energy (between large and mini hydroelectric plants of up to 20 MW, considered Renewable Energy Resources (RER) under Peruvian regulations); 3,000 MW of geothermal energy; and between 450 and 900 MW of biomass energy.

However, despite the great potential of renewable resources in Peru, their share in the energy matrix is still very low compared to other technologies. Wind and solar only represent approximately 5% of the energy matrix.

Regulatory framework

The president of the SPR said that, despite being one of the first countries in the region to promote renewable energies, Peru has not developed an adequate regulatory framework that allows it to pass on to consumers the efficiencies that new technologies have brought in recent years.

Among the changes proposed by the energy association are the participation of renewable energies in the next tenders of the distributors through hourly block tenders and separation of energy and power.

Likewise, the entity proposes to issue the Distributed Generation Regulation. "This means that, if a person installs a solar panel at home to generate electricity and gets more than he/she really needs, he/she injects the rest into the distribution system and is compensated, either by reducing the tariff or selling that energy to another consumer," Ramírez said.

Another regulatory proposal is the preparation of the transmission system to be able to receive a high flow of renewable energies; as well as the initiation of the short, medium and long term energy planning process.

"If these proposals are implemented, the positive impact on tariffs will be significant, as there will be a reduction of between 6% and 7% for the end consumer, as well as the satisfaction of contributing to environmental care," Oviedo said.

Cost reduction

There is consensus among specialized entities that renewable energies, mainly wind and solar, will reduce energy generation costs in Peru, contributing to lower electricity rates for all Peruvians, particularly those most affected by the current crisis.

Internationally, it has been demonstrated that energy generated with renewable sources such as wind and solar, has a more competitive price than energy generated by conventional sources such as natural gas, oil, coal and large hydroelectric plants

"Therefore, its use has a positive impact on the competitiveness of all industries and on the electricity costs paid by end users," said the general manager of Negli SAC, Rosendo Ramirez.

Likewise, it has been proven worldwide that energy generated with renewable sources such as wind and solar energy is more competitively priced than energy generated by conventional sources such as natural gas, oil, coal and large hydroelectric plants, so its use has a positive impact on the competitiveness of all industries in the country and on the electricity costs paid by end users.

"To date, renewable energy projects, particularly solar and wind, have significantly decreased in price, so they are able to compete for the supply of energy in the commercialization instances of the regulated and free market in Peru," said the president of the SPR, Brendan Oviedo.

11,210 MW of wind energy and 3,500 MW of solar energy is the projected supply of non-conventional renewable energies for Peru by 2032. Data

The countries that have opted for a greater deployment of renewable energies are making more progress and are already enjoying the benefits of the energy transition in the region. Chile, for example, has a matrix with a share of renewables of more than 120%.

Peru has the second highest regulated electricity tariff in Latin America, affecting, due to its high costs and continuous rise, the entire Peruvian population, especially the most vulnerable Peruvians, already hit by the rise in commodity prices marked by the covid-19 crisis.

Renewable energies, mainly wind and solar, will reduce energy generation costs in Peru, contributing to lower electricity tariffs for all Peruvians.