Factors for Geothermal Energy Development in Peru

Abstract

In the full year of 2012 Peru?s GDP expanded by 6.3 percent, driven by private/public investment and also by an 8.4% increase in domestic demand. This expansion was the largest in South America followed by Chile at 5.8%. High growth rates, macroeconomic stability, trade openness and financial liberalization are some of the positive characteristics driving Peru?s growth and increasing its demand for energy. Current and medium term traditional energy solutions can?t meet the growing demand and Peru has also made a commitment to support renewable energy generation to meet the growth. Geothermal energy is now strongly positioned to fill the demand. Richly endowed with geothermal resources (particularly in the south where some of the largest development projects are underway), Peru is poised to be a leader in geothermal development in South America. In order to pave the way, companies active in Peru?s geothermal development market, have joined together to work proactively with communities and government to drive the geothermal initiative. Revised federal regulations, community activism and the engagement of regional and local government has geothermal energy positioned to be a socially accepted complement, and a viable alternative, to a new energy matrix that will facilitate the socio-economic development of Peru.