WSHPDR_2013_Final_Report-updated_version

(at reservoir outlet works, canal drop structures, etc.).
Assuming a similar ratio of total installed capacity to
irrigated areas in Peru as in Chile, Peru possibly has a
potential of 510 MW for small- to mediumhydropower
plants that could be incorporated into
existing irrigation infrastructure (figure 2). 4
The gross small hydropower potential (up to 20 MW)
is 170,000 MW, while both the technical and economic
potential is reported as 69,445 MW in a questionnaire
by the Ministry of Energy (figure 2). 10
SHP installed capacity (up to 10 MW)
SHP potential (up to 10 MW)
SHP installed capacity (up to 20 MW)
SHP potential (up to 20 MW)
254.32 MW
unknown
3,514.02 MW
69,445 MW
0 20000 40000 60000 80000
Figure 2 Small hydropower capacities in Peru
The Rural Electrification Project assisted by the World
Bank will provide a more reliable assessment of the
technical potential for small- to medium-sized
hydropower development through a new Hydro-GIS
study underway by MEM. It should be noted that the
technical potential will not be necessarily
economically or financially feasible.
There is sufficient local capacity for project design,
local topographic, geological and hydrometric
investigations, and a number of firms that offer up-todate
services. There are also a number of national and
international consulting engineering companies that
can carry out project design services. There is also
sufficient capacity for environmental services,
including EIA and a number of locally based companies
offering services relating to the Clean Development
Mechanism and the acquisition of carbon credits.
With regard to equipment and manufacturing, there is
technical capacity available in Peru for manufacturing
small hydropower components and related piping.
This helps lower the costs of small hydropower. 9 There
is at present only one manufacturing company in Peru
that manufactures Francis and Pelton turbines,
suitable for small hydropower projects with medium
to high heads. Other companies manufacture crossflow
turbines of the Mitchell-Banki type. The
maximum size of Pelton or Francis turbines currently
manufactured locally is 5 MW. Projects with large unit
sizes are therefore subject to the current rapidly
increasing prices of turbines on the international
market, as well as to the increasingly long delivery
times. Most hydraulic steel structures (gates, valves,
etc.) required in small hydropower projects can be
manufactured in Peru, although equipment for
opening/closing (servomotors) may need to be
imported. Transmission lines at the voltages
associated with small to medium sized hydropower
projects, including towers and cables, can also be
manufactured in Peru, with some components (e.g.
insulators) being imported. 4
A few years ago, hydropower equipment
manufactured from China was imported to Peru with
acceptable technical quality and economic costs
(compared to U.S. or European alternatives in the
range between 0.5 MW and 5 MW). Power projects up
to 20 MW are likely to use Chinese manufactured
equipment.
Renewable energy policy
Rural electrification is promoted by the Law on Rural
Electrification (Ley de Electrificación Rural y de
Localidades Aisladas y de Frontera), enacted in 2002. It
clearly states the objective of fostering socioeconomic
development and establishes a fund for rural
electrification, which is administered by the General
Directorate of Rural Electrification (Dirección General
de Electrificación Rural), a division of the MEM. After
the implementation of the project, management is
transferred to a public enterprise – Electric
Infrastructure Administration Enterprise (ADINELSA). 11
The funding for rural electrification projects is
centralized at the National fund for Rural
Electrification (Fondo Nacional de Electrificación
Rural). Besides government support, funding is also
acquired from the International Bank for
Reconstruction and Development and the Global
Environment Facility. Between 2007 and 2009, 4,000
households (20,000 people) were provided with grid
access via the Energising Development Program,
financed by the Netherlands Directorate General for
International Cooperation (DGIS) and implemented by
the German Technical Cooperation Agency. According
to the Renewable Energy Rural Electrification Plan, the
goal is to electrify about 260,000 households with PV
and about 20,000 with small hydropower by 2020. 11
On 2 May 2008, the Government issued a Renewable
Energy Decree for the promotion of electricity
generation using renewable energy (Decreto
Legislativo de Promoción de la Inversión Para la
Generación de Electricidad con el Uso de Energía
Renovable). In this Decree, the Government has
chosen to set a target ceiling for a share of renewable
sources in electricity generation, in combination with
a premium price. Although small hydropower will not
be considered in the indicated ceiling it will benefit
from the incentives in the law. It may be expected that
small hydropower projects would compete in the
auctions for the premium mainly with wind based
technologies.
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