PERU: Advisory Support for the Power Sector Modernization Reform in Peru
The objective of this activity was to support the Government of Peru (GoP), through the MINEM, to develop a comprehensive regulatory framework to modernize the power sector to facilitate the insertion of new market agents, technologies, and market mechanisms, to enhance competitiveness and attract greater private investment, and enhance reliability, and innovation in the sector.
In particular, the activity has supported MINEM, through the CRSE develop conceptual frameworks in four priority areas, namely:
- Strengthening of the Institutional Framework. The framework identifies actions and proposes recommendations that seek the adaptation of the institutional framework for the transition to the new electricity market under the following areas: Institutional Transformation of COES, Integration of Energy Planning, Dynamization of the Natural Gas Market, Modernization of Public-Owned Electricity Companies, and Strengthening of market regulation and supervision/monitoring.
- Transformation of the Wholesale Market. The report provides recommendations to address the Peruvian wholesale market design: improving short-term market performance, long-term generation adequacy mechanism, efficient incorporation of renewable energy generation, development of new complementary/auxiliary services market, and regulatory oversight of electricity supply industry.
- Innovation in the Distribution and Retail Market. The report provides regulatory proposals focusing on restructuring distribution activities, advanced metering infrastructure, distribution activity revenue setting, tariffs design and the retail market.
- Transmission Systems Improvement of Regulation and Management. This report proposed conceptual models and frameworks for improving the regulation and management of the Peruvian transmission system.
Each of these frameworks was extensively shared and discussed with key stakeholders. These conceptual frameworks will be the starting point for the next phase of work to develop the Electricity Sector White Book.
All reports are publicly available at http://www.minem.gob.pe/_detalle.php?idSector=6&idTitular=9695&idMenu=sub9329&idCateg=1855