PERÚ - Observatory for Renewable Energy in Latin America and

Perú- Products I and II
• Bidders present their offer with the annual energy that they are committed to
give and the corresponding price for that energy (their awarding tariff).
Offers that surpass the maximum awarding tariff are dismissed. The
evaluation of offers and awarding, is executed independently for each
technology type (there is no competition among technologies), in function to
the offered price.
• The awardees are granted a supply contract of energy for 20 years, with a
guaranteed price equal to its offer (Awarding Tariff - AT -). Like
counterpart, the RER awardee must supply the annual compromised energy
(Awarded Energy - AE -) in its offer. If during a year it fails to supply the
100 % of the AE, its AT descreases (for that year) (Correction Factor)
proportionally to the breach of the contract.
• The RER awardee injects its energy in the short-term market at a marginal
cost and remunerated monthly (entrance to the short-term market).
Additionally, from the following year it perceives a monthly bonus (Income
for bonus) which aims to cover up the difference between: (1) the valuation
at the correspondent AT of its delivered energy (till the AE) and (2) the
income in the short-term market.
• The bonus is covered by a “Bonus charge” incorporated in the “Toll for
Connection to the Guaranteed Transmission System” that every user of the
National Interconnected Electrical System (SEIN) pays. That charge
includes the effect of the deferred payment (from the following year) of the
bonus, considering the monthly rate corresponding to the annual discount
rate (12 %) established in the Electrical Concessions Law.
• The energy injected “above” its AE (surplus of energy) is valued at marginal
cost of the system, which represents an extra income for the RER awardee
generator (income for energy surplus).
The way of remunerating RER generation, resulting of the auction described
previously is outlined in Graphic Nº 30, where:
• AE is the awarded energy committed to be injected annually;
• IE is the injected energy in default (d) or in excess (e);
• AT is the awarding tariff;
• ATa is the AT adjusted by the correction factor. In case the IE was less than
the AE, the correction factor is equal to IEd/AE;
• MC represents the short-term marginal cost.
49