PERÚ - Observatory for Renewable Energy in Latin America and

Perú- Products I and II
a) Law to Promote Investment in Electricity Generation with Renewable Sources.
This Law aims at promoting the use of the Renewable Energy Resources (RER)
of the country. On the following paragraphs there are summarized the main
aspects of this Law:
• RER are understood as energy resources like biomass, wind, solar,
geothermal and tidal. It is included hydropower when the installed capacity
does not surpass 20 MW.
• Electricity generation based on RER has priority for the daily dispatch of
load made by the COES, which need to be considered with variable
operation cost of zero (0).
• If there exists capacity in distribution and/or transmission systems, RER
generators have priority to get connected, till the maximum limit of the
objective annual percentage of the MEM.
• RER generators that have cogeneration or distributed generation features
pay for the use of distribution networks only the part of incremental cost in
which the operator of that networks incurs.
• The MEM will establish every five (5) years an objective percentage in
which it should take part, among the national electricity consumption, the
electricity generated based on RER. There are not considered Hydroelectric
Power Stations among this objective percentage, which means more space
for unconventional renewable energies. The Law establishes that the
objective percentage will be up to five percent (5 %) in each year of the first
five year period; it means, up to May of 2013.
• The participation of renewable energies is achieved through the Auction
Mechanism whic guarantees RER generators an Awarding Tariff (equal to
its corresponding price supply) for their energy production. Bidders offer
and annual energy quantity of and a monomic price 8 for that energy.
b) Regulations of the Law to Promote Investment in Electricity Generation with
Renewable Sources. The Regulations of the Legislative Decree Nº 1002,
establish the rules for the RER auctions and other remunerative details to the
RER generators. The following summarizes the relevant aspects of the
Regulation:
• The bases of the auction, on which the rules of the process are based, are
elaborated and approved by the MEM. The announcement and leading of
the auction process is in charge of OSINERGMIN. Every 2 years the MEM
evaluates the need to convoke a new auction.
• In the bases of the auction there is established the participation of every type
of RER technology to cover up the required energy.
• OSINERGMIN fixes in each auction a maximum awarding tariff by each
type of RER technology, considering 12 %'s discount annual rate established
in the Article Nº 79 of the Electrical Concessions Law (ECL).
8 
Is the price that includes the energy and power price expressed in US$/MWh
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