July 2014: The International Renewable Agency (IRENA) has published a report titled ‘Peru Renewables Readiness Assessment 2014,’ which identifies actions needed to help Peru overcome barriers to renewable energy deployment.

The Renewables Readiness Assessment (RRA) for Peru, the first in Latin America and intended as a model for RRAs elsewhere in the region, looks at the current state of Peru’s policy and regulatory framework, renewable energy power in the grid, rural electrification, and biofuels development. A primary conclusion of the RRA is that while Peru already has taken significant steps to develop renewable energy auctions, further improvements can be made in planning and preparatory activities, as well as auction design.

Among the steps the RRA recommends to improve auctions are: defining clear long-term policy goals for auctions; announcing auctions at least one year in advance; encouraging regional authorities to prioritize the identification and provision of land with clear land titles/lease options in areas with renewable energy potential; communicating best practice in assessing technology performance and risks; fine-tuning auction design and procedures; and studying such steps as changing the size of auction rounds, phasing in local content requirements, and allowing for hybrid or even technology-neutral auctions.

As for increasing the intake of renewables into the grid, the RRA recommends such steps as undertaking segment-specific upgrades of grid infrastructure, and conducting studies on possible impacts of different levels of renewable generation from different sources on Peru’s transmission system. Among the steps suggested for increasing rural use of renewable energy are complementing existing Peruvian standards for solar photovoltaic systems with standards for other renewable energy technologies, as well as providing capacity-building activities for the installation, operation and maintenance of rural renewable energy systems.

The report also identifies where IRENA can assist Peru in taking such steps and the key local actors that must be involved. [Publication: Peru Renewables Readiness Assessment 2014]