Why this is important to Wisconsin businesses: The South American nation needs help in complying with global commitments against climate change.
Peru has committed to develop renewable energy to reduce the country’s greenhouse gas emissions. With a goal of complying with global commitments against climate change, they are looking to achieve a 30% reduction in the emission of greenhouse gases.
The country has a long way to go. Conventional hydroelectric power represents 57% of the Peruvian energy matrix, while fossil fuels represent 38%. An EY report from late 2018 ranked Peru as the fifth-most-attractive Latin American market for renewable energy investment, behind Argentina, Chile, Mexico and Brazil. Last year, Enel Green Power opened the 132MW Wayra I wind plant in Peru’s Ica region. In addition, Spain’s Grenergy obtained $40 million in financing this year to build two 36.8MW wind farms in Chota, Cajamarca region. With these developments in mind, the country is looking to become a renewable energy powerhouse moving forward.
In addition, Peru is looking to reduce its rate of emissions through the use of seed funds. For instance, Peru’s Ministry of the Environment promised $32 million in seed funding if CO2 emissions are reduced to meet specified targets in the regions of San Martín and Ucayali. Public and private sector actors are coming together to figure out ways to reduce emissions through the use of new technologies in clean tech and renewable energy. Such projects will enable Peru to reach climate targets and affirm its role as a leading player in the fight against climate change.