Geothermal Country Update for Peru, 2015-2020

Abstract

The Peru’s National Energy Plan for 2010-2040 (supreme Decree N° 026-2010-EM) promoting energy efficiency and development of renewable energies at local, regional and national level, where including the geothermal energy. Actually the geothermal development is not present in the energy matrix, because it is only in the exploration stage. There have been three auctions of energy from Renewable Energy Resources (RER) which currently consists of generating from solar origin and wind farms. Nowadays, the geothermal energy utilization is still restricted use, in local pools and balneology centers for tourism. According to the Master Plan for the Development of Geothermal Energy in Peru, there is a geothermal potential of 2860 MWe nationwide, being the most promising areas in the southern part of Peru associated to active volcanism. In that sense, the Mining and Metallurgical Geological Institute (INGEMMET) continue with research program for updating the potential in the country, finding a new geothermal area in the region of Tacna called Paucarani, with the a potential of 72MWe. In terms of the regulatory framework, the country has a specific regulation for geothermal electricity generation like the Organic Law for Geothermal Resources, Law Nº 26848, and its regulations approved by Supreme Decree N° Nº 019-2010-EM and an auction system regulated by the Supreme Decree N° 1002, “Law for the Promotion of the Investment in Electricity Generation using Renewable Energy”. However, there has not been any deep exploration yet, or any project executed. It has not been determined the sealing price for the electricity generation through geothermal energy and this technology has not been included in any of the four Renewable Energy Auctions conducted at the time in the country. In spite of the scenario, there is a huge potential for the development of geothermal technology for electricity generation and for direct use in the southern parts of the country, especially due to the expected entrance of new mining projects and the necessity of ways for facing frost in high altitude areas.