Energy Law at Peru
Certainly! Here’s an overview of Energy Law in Peru covering the main legal framework, regulatory bodies, and key issues:
Energy Law in Peru
1. Legal Framework:
Peru’s energy sector is regulated by a comprehensive set of laws and regulations aimed at promoting investment, sustainable development, and efficient energy use.
The cornerstone is Law No. 28832 – Law of the Electricity Concession, which governs electricity generation, transmission, distribution, and commercialization.
Other important laws include:
Hydrocarbon Law (Legislative Decree No. 1000) regulating oil and gas exploration, production, and commercialization.
Renewable Energy Law (Law No. 28749) promoting renewable energy sources.
Environmental laws also impact energy projects, requiring environmental impact assessments (EIA).
2. Regulatory Authorities:
Ministry of Energy and Mines (MINEM): The main policymaker responsible for the national energy strategy and regulation.
Organismo Supervisor de la Inversión en Energía y Minería (OSINERGMIN): Independent regulator overseeing compliance, safety, tariffs, and quality of service in electricity and hydrocarbons sectors.
Perupetro: State agency managing exploration and production contracts for hydrocarbons.
3. Energy Sector Structure:
The energy sector is divided into:
Electricity: Includes generation, transmission, distribution, and commercialization.
Hydrocarbons: Exploration, production, refining, and distribution of oil and natural gas.
Renewable Energy: Increasingly important with laws promoting solar, wind, biomass, and small hydroelectric projects.
4. Key Legal Provisions and Policies:
Electricity Market: Peru has a competitive electricity market with regulated tariffs for transmission and distribution, and free market competition for generation and commercialization.
Renewable Energy Promotion: The government offers incentives such as tax benefits and priority grid access for renewable projects.
Energy Auctions: Periodic public bidding processes for electricity supply contracts, promoting transparency and competitiveness.
Environmental Regulation: Energy projects require environmental impact assessments (EIA) per the General Environmental Law (Law No. 28611).
5. Challenges and Focus Areas:
Expanding energy access in rural and remote areas.
Improving energy efficiency and sustainability.
Encouraging investment in clean and renewable energy.
Strengthening regulatory frameworks to ensure reliable supply and protect consumers.
Summary
Peru’s energy law framework is robust, combining comprehensive sector-specific legislation, a clear regulatory structure, and policies that support market competition and renewable energy growth. The government actively promotes energy diversification and environmental sustainability while ensuring reliable energy services.
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