Publication:
Peru : Overcoming the Barriers to Hydropower

Loading...
Thumbnail Image
Files in English
English PDF (1.15 MB)
823 downloads
English Text (471.65 KB)
169 downloads
Date
2010-05
ISSN
Published
2010-05
Author(s)
Editor(s)
Abstract
Hydropower has been the major source of electricity in Peru, traditionally supplying more than 80 percent of electricity requirements, and serving as a source of independent generation for major mines and industries. With the development of natural gas in the early 1990s, and the opening of the Camisea pipeline, the Government of Peru's (GOP's) attention turned to providing incentives for the use of natural gas in power generation. This resulted in a virtual moratorium on hydropower development as a result of the very low price of natural gas (below economic cost). With the development of export markets for gas and increased attention to the impacts of climate change, the Government has recently begun to pay renewed attention to hydropower. Recent developments include: (a) introduction of accelerated depreciation for hydropower investments; (b) introduction of a "discount" to permit hydropower to compete with gas-fired plants in auctions; and (c) announcement of a special hydropower auction to be held in 2009 by ProInversion, the state agency for promoting private investment. The intention of this report is to assist the GOP in assessing the potential role of hydropower in the sector and the measures that could be taken to encourage its continued development as appropriate. The study was done at a particularly challenging time. First, there was considerable volatility in energy prices and investment costs, which needed to be incorporated into the analysis. Second, financial markets were in disarray and it was difficult to predict when conditions were likely to normalize. Third, the GOP recently introduced many new policies and regulatory measures through supreme decrees that are changing the regulatory system and may interact in unexpected ways.
Link to Data Set
Citation
World Bank. 2010. Peru : Overcoming the Barriers to Hydropower. Energy Sector Management Assistance Program (ESMAP) reports;. © http://hdl.handle.net/10986/17528 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    Handshake, No. 13 (April 2014)
    (Washington, DC, 2014-04) World Bank Group
    This issue of Handshake, focused on public-private partnerships in the power sector, brings diverse expert voices together to discuss how to increase access to energy in developing countries. Features on hydropower and renewables together with examples from Africa and Latin America provide an up-to-the-minute look at one of the most important and rapidly evolving sectors today. This issue includes the following headings: power and mining: digging deep to power up; market mover: intraday electricity trading; timeline to transformation: Nigerias privatization; energy for development: Massachusetts Institute of Technology (MITs) new research; and interview: United Nation (UN) sustainable energy for all (SE4ALL) special representative Kandeh Yumkella. Whats it like to be energy-poor? Kandeh Yumkella, Special Representative of the United Nations Secretary General for Sustainable Energy for All, answers that question and many more in this issue of Handshake. Yumkella recalls his own experiences in Sierra Leone to illustrate the link between energy poverty and income poverty and explains how PPPs can help.
  • Publication
    Technical and Economic Assessment of Off-grid, Mini-grid and Grid Electrification Technologies
    (Washington, DC, 2007-12) World Bank
    This report is part of the Energy and Water Department's commitment to providing new techniques and knowledge which complement the direct investment and other assistance to electrification as provided by the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The purpose of this report is to convey the results of an assessment of the current and future economic readiness of electric power generation alternatives for developing countries. The objective of the technical and economic assessment was to systematically characterize the commercial and economic prospects of renewable and fossil fuel-fired electricity generation technologies now, and in the near future. The study was designed to cover the widest possible range of electrification applications faced by energy services delivery and power system planners, whether supply is provided through grid networks or stand-alone or mini-grid configurations. The assessment was conducted using a standard approach and is presented in a consistent fashion for each power generation technology configuration. The assessment time frame includes current status and forecast development trends over the period 2005-15, while the economic assessment considers a range of typical operating conditions (peak, off-peak) and grid configurations (off-grid, mini-grid, interconnected grid) for various scales of demand. The technology characterization reflects the current stage of commercialization, including indicative cost reduction trends over 10 years. This study is limited in several ways. First, it is time-bound. It does not reflect new technology developments or new secular trends that have emerged since the terms of reference were formalized. Secondly, it is bound by the available literature. Thirdly, the results are generalized and represent averaging over what are important specific conditions (although the uncertainty analysis accounts for this somewhat).
  • Publication
    Drilling Down on Geothermal Potential
    (World Bank, Washington, DC, 2012-03) World Bank
    Economic growth in Central America has increased rapidly over the past 20 years. Currently, the gross domestic product (GDP) per capita for the six Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama averages approximately US$3,600. However, economic disparity in the Latin American region is the highest in the world. Despite impressive growth, 20 million people or half of the population in Central America are classified as poor. This assessment of the geothermal potential module is the fourth in the series; it provides an analysis of the energy context in the region focusing on the technology and past experiences of geothermal resources. The study aims to identify the challenges associated with development of geothermal generation, including physical, financial, regulatory and institutional barriers, and it outlines some possible strategies to overcome them at the regional and country-specific level with a view to establish a basis for policy dialogue and to provide decision-makers a reference document with a regional outlook. Energy, particularly electricity, is critical for economic development. It is needed to power machinery that supports income-generating opportunities. Countries that have affordable and reliable energy can more easily attract both foreign and domestic capital. Central America's vulnerability to external shocks in the energy sector has increased over the last years. The region depends on foreign supply of fossil fuels (oil, coal). Since the share of thermal generation in power supply has increased significantly in the last decade, exceeding installed capacity for hydropower, the rise and volatility of oil prices has a dramatic effect today on the region's economy. Together with integration, it has become increasingly clear that the region must develop its local energy endowment, which has generated a strong interest in renewable energy sources and technologies, such as hydropower, geothermal, and wind. Given its potential in the region, geothermal energy has attracted the attention of policymakers and private investors as a resource to further develop and supplement hydroelectric generation (and to reduce dependency on thermal generation).
  • Publication
    Peru
    (Washington, DC, 2008-06-26) World Bank
    Peru is favored by a stable and growing economy and the availability of indigenous sources of energy for electricity generation, hydro and natural gas. Installed capacity in Peru in 2006 was 6658 MW, of which 48 percent was hydro-based. However, regarding new investment in generation, there is reason for concern. Demand growth over the past five years has been 5-10 percent, with no signs of slowing down. At the rate of 10 percent demand growth, 400 MW of new generation capacity is necessary each year, representing at least US$250 million annually of new investment. The present study on small hydropower contains the following sections: (i) introduction; (ii) technical potential for development of small hydropower in Peru; (iii) economic and financial viability of small hydro development in Peru; (iv) institutional and regulatory environment; (v) identification of barriers to small hydropower development and mitigation measures; (vi) international experience with small hydropower development; (vii) the potential impact of the Renewable Energy Decree; and finally, (vii) conclusions and recommendations.
  • Publication
    Designing Strategies and Instruments to Address Power Projects Stress Situations
    (World Bank, Washington, DC, 2009-08) Meyerman, Gerald; Covindassamy, Ananda M.
    It is an internationally recognized reality that continued and increased investment in the power sector by private firms is essential to providing affordable and reliable energy to an increasing portion of the world population. However, investing in power projects in the developing regions of the world exposes nations, governments, consumers, and investors to unusually high levels of risk. This study will have succeeded if it encourages parties, on all sides, to recognize problems as early as possible and concentrate on identifying possible solutions, and then implementing them. This study marks the interest of investors and lenders in finding procedures and instruments to facilitate the resolution of disputes arising from stress situations. To begin with we will summarize the predominant causes, characteristics, and consequences of project stress in the energy sector of emerging markets. The author will seek to describe and understand the incidence of various patterns of characteristics and consequences of project stress that emerge as power projects are broken down by type industry stage and region. Then the author will discuss how to prevent the emergence of stress situations in power projects as well as the instruments and strategies available for the resolution of power project stress.

Users also downloaded

Showing related downloaded files

  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Lebanon Economic Monitor, Fall 2022
    (Washington, DC, 2022-11) World Bank
    The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.
  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.
  • Publication
    Argentina Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11) World Bank Group
    The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
  • Publication
    The Journey Ahead
    (Washington, DC: World Bank, 2024-10-31) Bossavie, Laurent; Garrote Sánchez, Daniel; Makovec, Mattia
    The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.