PERUVIAN ELECTRICITY REFORM: HEADING TOWARD MODERNIZATION AND ENERGY TRANSITION

This article is written as Peru commemorates 200 years of independence. The President of the Board of Directors OSINERGMIN, believes that on this commemorative day it is important to raise public awareness of the role that energy plays, in keeping the Peruvian economy afloat and in providing reliable frontline services. In this sense and in the spirit of Peru's bicentenary, Jaime R. Mendoza Gacon, would like to take this opportunity to reflect on an important milestone in the Peruvian energy sector: the Electricity Reform.

The beginning of the Peruvian power system goes back to 1992, with the Electricity Concessions Law, a legal framework that ensures a reliable and efficient electrical system. Later, in 2006 the Efficient Development of Electricity Generation Law was issued to consider the use of auctions by distribution companies for the procurement of energy supply to regulated consumers and transmission planning. During the past 27 years, Peru's power system model has undergone numerous adjustments for the modernization of Peru's power sector.

To boost generation, transmission, distribution, and commercialization of electricity sustainably, Peru launched in June 2019 the Multisector Commission for the Reform of the Electricity Subsector including representatives of Peru's Ministry of Energy and Mines and Osinergmin, the energy regulator. This multisector commission hired a group of international experts to prepare a report considering four pillars 1) strengthening the institutional framework, 2) transformation of the wholesale market, 3) innovation in distribution and retail marketing, and 4) simplification and modernization of transmission networks regulation and their operation and management.