The investment will take place between 2018 and 2020.
Francesco Starace, the CEO of Enel said that the company will continue to bet on developing projects in Peru, since the country has one of the most promising markets in terms of renewable energy in the world. He believes that renewable energy will replace thermal energy very soon, starting in Peru, due to the potential it has in terms of water, solar, wind and geothermal energy sources.
Starace also stated that thermal energies are not economically comparable to renewable energies. The latter generate more profit and mentioned that South America is slowly modifying its market to favor these kinds of sources which are eco-friendlier and more competitive.
According to information from the company, Peru has the second lowest rate of electrical supply interruptions in Latin America, beating Brazil, Colombia, and Argentina. Only Chile has a lower rate, but Peru is looking to perform even better in 2020. Enel is looking to reduce interrupted minutes by 17% in the period between 2017 and 2020.
Currently, there is an oversupply of energy in the country that has generated a depression of energy sales prices and thus has affected the electricity sector both at the level of generation and distribution. Bearing this in mind, for several years, Enel’s strategy has become even more competitive, since, it is a matter of time until Peruvian legislation begins to open up to the non-conventional renewable energy market.