Distributed Generation and Grid Flexibility for an Efficient Energy Transition in Peru

Project Summary:

The Peruvian government is in the process of improving the policies of the electricity sector and regulatory framework, aiming at an efficient energy transition. Considering the ample renewable energy resources (RER) and natural gas (NG) reserves that Peru has, one of the main challenges that the Peruvian electricity sector faces is to achieve a diversified energy matrix, with an emphasis on RER and a reduced role of NG, for an economic and competitive evolution of electricity supply. Furthermore, transmission and distribution networks face increasing pressure to integrate new technologies, such as electric vehicles, distributed solar and wind generation, and energy storage, quickly, safely, and at low cost. The proposed program would support the government’s power sector reform agenda, with the development objective to support accelerate the development of renewable energy resources, grid flexibility, and distributed generation for an efficient energy transition in Peru.

List of Activities:

• Regulatory support to develop Distributed Energy Resources (DER) in Peru 
• Regulation of flexibility services in the power system: technical-economic criteria for operation and business development 
• Definition of a strategy to introduce V-to-Grid energy and its potential use as a source of flexibility services

Outcomes:

Output 1:

• Main report including a diagnosis of the current situation of distributed generation in Peru, regulatory proposals to support the scaling up of DER, and business models proposals
• Dissemination workshop for main technical stakeholders

Output 2:

• Analysis report including a diagnosis of ancillary services in the power market, business and investment conditions for business development, and tariff conditions
• Dissemination workshop for main technical stakeholders

Output 3:

• Strategy report including the prioritization of transport subsectors, analysis of the business and operational conditions for electromobility, vehicle charging and flexibility services, and remuneration for V2G flexibility services. 
• Dissemination workshop for main technical stakeholders. 

Outcomes:

Implementation of the first activity will result in: (i) Peruvian government’s energy sector policy on DER informed; (ii) Development of Partnerships around DER as an enabler of green and clean electricity provision; (iii) Government’s implementation capacity strengthened; (iv) Development of Partnerships around Flexibility Technologies present in Peru; (v) Development Policy finance informed; and (vi) Development of Partnerships around innovative E-mobility business models.

Collaboration with K-Partners and Others:

• New and Renewable Energy Resource Center of Korea (NRERC)
• ESMAP
• Transport GP 
• CMU
• KEPCO
• KIAT
• MINEM
• OSINERGMIN
• COES