Invest Peru
Investment Opportunities in Renewable Energy in Peru 

September 2024 

Peru stands out as a prime destination for foreign investment, underpinned by strong macroeconomic policies and a range of fiscal incentives. With the lowest inflation rate in the region and a low level of public debt, it offers a secure and stable environment for investors. The construction of the new Chancay megaport will further position Peru as a key logistical hub in South America, facilitating trade with Asia and Oceania.

Peru leads economic growth projections in Latin America for 2024 and 2025, driven by increased private consumption and a gradual recovery in both private and public investment.

Strategic sectors for investment in Peru include Renewable Energy, the Food Industry, Green Hydrogen, and Agro-industries.

Peru has firmly established itself as an attractive destination for Foreign Direct Investment (FDI), ranking fourth in Latin America in terms of FDI inflows between 2003 and February 2024, behind Brazil, Chile, and Argentina. During this period, the country attracted more than USD 112 billion through 1,220 projects, generating over 252,000 jobs.

Peru’s strategic location, abundant natural resources, and resilient economy make it a highly appealing investment destination. Despite international challenges, the country maintains a secure and stable investment environment through strong macroeconomic policies, low inflation, and a favorable legal framework, particularly in the renewable energy and agro-industrial sectors.

In Renewable Energy, Peru boasts significant resources in hydroelectric, wind, solar, biomass, and geothermal energy. In 2022, hydropower and wind energy accounted for 39% and 37% of electricity generation, respectively. From 2003 to 2024, Peru attracted 46 FDI projects totaling USD 5.982 billion, creating 4,768 jobs. Spain and Brazil are the main investors, drawn by government incentives such as regular auctions, Renewable Energy Resources (RER) premiums, guaranteed income for twenty years, and priority electricity dispatch.

Bloomberg NEF’s 2022 Climatescope report, which evaluates countries’ attractiveness for clean energy investments, ranked Peru 15th globally and fourth in South America due to its abundant natural resources and sustained growth in electricity consumption. Projects like the Quellaveco and Las Bambas mines are already utilizing solar energy, while high solar radiation along the southern coast positions Peru as an emerging leader in green hydrogen production.