Peru Wind Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Peru Wind Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Peru wind energy market is expected to grow at a CAGR of more than 11.6% during the forecast period 2020-2025. The market is expected to witness significant growth due to rising energy demand coupled with the increasing efforts to reduce the reliance on fossil fuel-based power generation. Factors like increasing demand for renewable energy, rising investments in wind farms, and declining cost of wind power generation and associated equipment are driving the wind energy market. However, the increasing adoption of alternate clean power sources such as solar is likely to hinder the growth of the wind energy market in the coming years.

Key Highlights

• Wind energy in onshore areas of the country is expected to have significant growth in the wind energy market in Peru during the forecast period.
• The Peruvian government's mission is to shift from an energy mix based essentially on hydrocarbons. Peru has plans to have 15% of renewables in its energy mix by 2030, which diversifies the energy mix to ensure a reliable and timely supply for energy demand, in order to guarantee the country’s sustainable growth and also to promote investments in the energy sector, which in turn, is likely to provide an opportunity to a growth in the deployment of wind energy in coming future.

Key Market TrendsOnshore Wind Energy is Expected to Witness Significant Growth

• Due to its geography, Peru possesses abundant wind energy potential. Mainly along the coastline and the primary mountain range, there are wind speeds in the range between 5 and 7.5 m/s, which enable an economically viable utilization. The regions with the most abundant wind energy potential are situated in the North at the coast as well as in the Andes and around Ica south of Lima.
• Some of the top regions with a wind power potential of more than 1000 MW in Peru are Amazonas, Ancash, Arequipa, Cajamarca, Ica, La Libertad, Lambayeque, Lima, and Piura.
• The country’s demand for electrical energy is registering high growth rates. As demand for energy is rising, Peru is turning toward the adoption of renewable energy as it has the ability to provide clean energy. The adoption of onshore wind energy along the coastline with higher wind potential attracts the companies for high investment.
• As of 2019, Peru holds 372.2 MW of installed wind capacity. Wayra I wind farm in Ica having installed capacity of 132 MW is the largest wind farm in Peru. The Duna Wind Power Plant, and the Huambos Wind Power Plant, located in Cajamarca, are the two new wind energy plants in Peru that are likely to start its commercial operations in 2020.
• The onshore wing energy is expected to witness a significant growth in the market during the forecast period, owing to high wind potential and improved technology.

Increasing Deployment of Solar Energy is Likely to Hinder the Growth of the Market Studied

• In 2018, Peru added 145-MW Rubí solar photovoltaic (PV) plant, which is the largest solar power plant in the country that boasts over half a million solar panels in the southern city of Moquegua.
• In the near future, it is likely that the solar market is expected to provide the largest opportunity for energy export growth and rural-electrification in regions of Peru.
• At the end of 2018, the renewable energy generation by solar has reached 0.7 TWh with a higher growth rate by the usage of the country’s abundant solar resources. With the anticipated improvements in technology and decreasing cost, investors/developers are expected to focus on the viability of solar projects.
• As of 2019, the installed capacity of solar energy in Peru is 341.1 MW, the solar PV installation is ought to increase during the forecast period and is likely to hinder the market.

Competitive Landscape

Peru wind energy market is consolidated due to few companies operating in the industry. Some of the major players in this market include Enel Green Power S.p.A., CONTOURGLOBAL PLC, Cobra Group PLC, and Grenergy Renovables SL.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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