Publication: Peru: Institutional and Financial Framework for Development of Small Hydropower
Loading...
Date
2008-06-26
ISSN
Published
2008-06-26
Author(s)
Editor(s)
Abstract
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.
Link to Data Set
Citation
“World Bank. 2008. Peru: Institutional and Financial Framework for Development of Small Hydropower. © World Bank. http://hdl.handle.net/10986/28103 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Designing Strategies and Instruments to Address Power Projects Stress Situations(World Bank, Washington, DC, 2009-08)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.Publication Peru Opportunities and Challenges of Small Hydropower Development(World Bank, Washington, DC, 2011-03)Peru is favored by a stable and growing economy and the availability of indigenous sources of energy for electricity generation, including hydro and natural gas. The Peruvian electricity sector is among the few in Latin America and Caribbean (LAC) that has not confronted a crisis in recent years. The power sector in Peru was reformed and restructured between 1991 and 1993, followed by a privatization and concession process. A modern legal and regulatory framework was established in the electricity concessions law of 1992-93. This report contains the following chapters: (1) introduction; (2) resource potential and technical capacity for development of small hydropower in Peru; (3) economic and financial viability of small hydro development in Peru; (4) institutional and regulatory environment; (5) identification of barriers to small hydropower development and mitigation measures; (6) international experience with small hydropower development; and finally (7) conclusions and recommendations.Publication Peru : Overcoming the Barriers to Hydropower(Washington, DC, 2010-05)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.Publication Rehabilitation of Hydropower : An Introduction to Economic and Technical Issues(World Bank, Washington, DC, 2011-09)Section one provides a concise summary of the results of the study and includes an overview of the conclusions as well as lessons learned based on the assessment of the case studies. Section two gives the context for the study including the definition of a set of hydroelectric project development options as background to related discussions of rehabilitation later in the report. Section three provides an overview of the contents of this report. Section four discusses the development and application of an assessment tool to facilitate the rapid assessment of regional hydropower inventories. This assessment tool has been applied to a data base and inventory of generating station information in the African and Central American regions to identify possible candidates for rehabilitation. The characteristics of the two inventories are outlined in the section and details of the approach and the results of the application of the tool to the two regions are given in annex A. Section five presents a screening-level economic assessment model which quantifies potential costs and benefits associated with hydropower rehabilitation, concluding with generally accepted economic parameters. Details of the development of the economic model are given in annex B. Section six summarizes the application of the economic model to the two data base and inventory of generating station information for the two regions (Africa and Central America). The application of the economic model is not intended to provide site-specific economic parameters for each station since there is insufficient information in the data base for this. The objective of modeling is to provide an order-of magnitude market assessment of the potential for rehabilitation based on the limited data available in the data base. Section seven presents a summary of the important elements of a number of case studies involving historical rehabilitation and expansion projects. The section is the source of a list of overall lessons learned which is presented in the conclusions section. Section eight is a summary of issues which covers the spectrum of Incentives to Barriers associated with the rehabilitation of hydro projects under three broad categories: technical, financial, and environmental or institutional.Publication Handshake, No. 13 (April 2014)(Washington, DC, 2014-04)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.
Users also downloaded
Showing related downloaded files
Publication Economic Recovery(World Bank, Washington, DC, 2021-04-06)World Bank Group President David Malpass spoke about the world facing major challenges, including COVID, climate change, rising poverty and inequality and growing fragility and violence in many countries. He highlighted vaccines, working closely with Gavi, WHO, and UNICEF, the World Bank has conducted over one hundred capacity assessments, many even more before vaccines were available. The World Bank Group worked to achieve a debt service suspension initiative and increased transparency in debt contracts at developing countries. The World Bank Group is finalizing a new climate change action plan, which includes a big step up in financing, building on their record climate financing over the past two years. He noted big challenges to bring all together to achieve GRID: green, resilient, and inclusive development. Janet Yellen, U.S. Secretary of the Treasury, mentioned focusing on vulnerable people during the pandemic. Kristalina Georgieva, Managing Director of the International Monetary Fund, focused on giving everyone a fair shot during a sustainable recovery. All three commented on the importance of tackling climate change.Publication Remarks at the United Nations Biodiversity Conference(World Bank, Washington, DC, 2021-10-12)World Bank Group President David Malpass discussed biodiversity and climate change being closely interlinked, with terrestrial and marine ecosystems serving as critically important carbon sinks. At the same time climate change acts as a direct driver of biodiversity and ecosystem services loss. The World Bank has financed biodiversity conservation around the world, including over 116 million hectares of Marine and Coastal Protected Areas, 10 million hectares of Terrestrial Protected Areas, and over 300 protected habitats, biological buffer zones and reserves. The COVID pandemic, biodiversity loss, climate change are all reminders of how connected we are. The recovery from this pandemic is an opportunity to put in place more effective policies, institutions, and resources to address biodiversity loss.Publication South Asia Development Update, April 2024: Jobs for Resilience(Washington, DC: World Bank, 2024-04-02)South Asia is expected to continue to be the fastest-growing emerging market and developing economy (EMDE) region over the next two years. This is largely thanks to robust growth in India, but growth is also expected to pick up in most other South Asian economies. However, growth in the near-term is more reliant on the public sector than elsewhere, whereas private investment, in particular, continues to be weak. Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit governments' ability to respond to increasingly frequent climate shocks. Yet, the provision of public goods is among the most effective strategies for climate adaptation. This is especially the case for households and farms, which tend to rely on shifting their efforts to non-agricultural jobs. These strategies are less effective forms of climate adaptation, in part because opportunities to move out of agriculture are limited by the region’s below-average employment ratios in the non-agricultural sector and for women. Because employment growth is falling short of working-age population growth, the region fails to fully capitalize on its demographic dividend. Vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. A range of policies could spur firm growth, including improved business climates and institutions, the removal of financial sector restrictions, and greater openness to trade and capital flows.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)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.Publication Media and Messages for Nutrition and Health(World Bank, Washington, DC, 2020-06)The Lao People’s Democratic Republic (Lao PDR) has experienced rapid and significant economic growth over the past decade. However, poor nutritional outcomes remain a concern. Rates of childhood undernutrition are particularly high in remote, rural, and upland areas. Media have the potential to play an important role in shaping health and nutrition–related behaviors and practices as well as in promoting sociocultural and economic development that might contribute to improved nutritional outcomes. This report presents the results of a media audit (MA) that was conducted to inform the development and production of mass media advocacy and communication strategies and materials with a focus on maternal and child health and nutrition that would reach the most people from the poorest communities in northern Lao PDR. Making more people aware of useful information, essential services and products and influencing them to use these effectively is the ultimate goal of mass media campaigns, and the MA measures the potential effectiveness of media efforts to reach this goal. The effectiveness of communication channels to deliver health and nutrition messages to target beneficiaries to ensure maximum reach and uptake can be viewed in terms of preferences, satisfaction, and trust. Overall, the four most accessed media channels for receiving information among communities in the study areas were village announcements, mobile phones, television, and out-of-home (OOH) media. Of the accessed media channels, the top three most preferred channels were village announcements (40 percent), television (26 percent), and mobile phones (19 percent). In terms of trust, village announcements were the most trusted source of information (64 percent), followed by mobile phones (14 percent) and television (11 percent). Hence of all the media channels, village announcements are the most preferred, have the most satisfied users, and are the most trusted source of information in study communities from four provinces in Lao PDR with some of the highest burden of childhood undernutrition.