Peru Power Report - Business Monitor International - Industry Reports

Peru Power Report

Peru Power Report - Business Monitor International - Industry Reports
Peru Power Report
Published Aug 20, 2016
64 pages — Published Aug 20, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Underpinning our positive outlook for the Peruvian power sector, we believe that the government of Pedro Pablo Kuczynski will adopt a business-friendly economic agenda and prioritise investment in infrastructure. President Kuczynski is committed to facilitating the completion of the Southern Peruvian gas Pipeline and to starting to export excess power to Chile. This supports our forecasts for robust growth in gas-fired power generation in Peru and for growing power exports. We expect the completion of the Southern Peruvian Pipeline (Gasoducto Sur Peruano, GSP) to be delayed as a result of the problems facing Brazilian constructor Odebrecht, the owner of a -- stake in the operation of the pipeline and -- in the construction project. As of July ----, multiple bidders for Odebrecht s stakes have come forward, but the financing for the GSP has yet to be agreed and disbursed by a syndicate of banks. ...The new Peruvian government has said its supports increasing power exports. Despite the success of the latest renewable energy tender in February ----, we maintain non-hydropower renewable energy will play only a minor role in the Peruvian electricity mix over the cnextoming decade,

...� Business Monitor International Ltd Page - due to much greater growth in hydropower and natural gas-fired power generation. Peru s latest National Energy Plan does not include provisions for growth in non-hydro renewables beyond its target of having - of total electricity produced by non-hydro resources by ----, which will be reached via the auction. As such we expect only limited demand for utility-level renewables in Peru. President Kuczynski s support for renewables creates some upside risk to our forecasts for the industry, but the current oversupply in the Peruvian electricity market will continue to be an obstacle to further growth in renewables. The Peruvian government was expected to award contracts for the development of several hydropower projects over the past few quarters. The fact the winners of these tenders have yet to be selected is testament to our view that delays in project tendering, awarding and implementation are one of the biggest risks to developing energy infrastructure in Peru. The main causes for delays include regulatory hurdles, limited institutional capacity, a challenging topography and opposition from local communities to projects with large social and environmental impacts.

...BMI View: Strong growth in electricity consumption, government tenders for power generation and transmissions projects, and a business-friendly new government support our positive outlook for the Peruvian power sector. Delays to the Southern Peruvian Pipeline confirm our view that delays in project tendering and implementation are the main risk in the Peruvian power sector, although we maintain that the pipeline will eventually be built - given the government s political commitment to it. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Peru Power Report" Aug 20, 2016. Alacra Store. Oct 28, 2016. <>
Business Monitor International - Industry Reports. (2016). Peru Power Report Aug 20, 2016. New York, NY: Alacra Store. Retrieved Oct 28, 2016 from <>
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