Scaling Onshore Wind in Peru: Law, Markets and the Challenges of a Clean Energy Transition

TY - JOUR

T1 - Scaling Onshore Wind in Peru

T2 - Law, Markets and the Challenges of a Clean Energy Transition

AU - Torres, Mariapía

PY - 2026/4/17

Y1 - 2026/4/17

N2 - This paper examines the role of onshore wind energy in Peru as a pathway for advancing the country’s clean energy transition while maintaining electricity security and affordability. Although Peru benefits from significant wind resources and an existing regulatory framework that initially supported deployment through competitive auctions, development has slowed due to economic, infrastructural and institutional constraints. The paper identifies three interrelated challenges. First, it analyses changing economic conditions following the suspension of Renewable Energy Resources (RER) auctions, which has shifted investment decisions towards market-based contracting and increased commercial risk. Second, it examines transmission and grid integration constraints, including spatial mismatches between resource availability and demand centres, as well as limited system flexibility. Third, it evaluates the alignment between Peru’s climate commitments under the Paris Agreement and domestic policy instruments, identifying an implementation gap. The analysis concludes that scaling onshore wind requires stronger policy coherence, accelerated transmission planning and stable long-term investment signals.

AB - This paper examines the role of onshore wind energy in Peru as a pathway for advancing the country’s clean energy transition while maintaining electricity security and affordability. Although Peru benefits from significant wind resources and an existing regulatory framework that initially supported deployment through competitive auctions, development has slowed due to economic, infrastructural and institutional constraints. The paper identifies three interrelated challenges. First, it analyses changing economic conditions following the suspension of Renewable Energy Resources (RER) auctions, which has shifted investment decisions towards market-based contracting and increased commercial risk. Second, it examines transmission and grid integration constraints, including spatial mismatches between resource availability and demand centres, as well as limited system flexibility. Third, it evaluates the alignment between Peru’s climate commitments under the Paris Agreement and domestic policy instruments, identifying an implementation gap. The analysis concludes that scaling onshore wind requires stronger policy coherence, accelerated transmission planning and stable long-term investment signals.

KW - Onshore wind

KW - Peru

KW - Energy transition

KW - Electricity markets

KW - Climate policy

U2 - 10.20933/100001495

DO - 10.20933/100001495

M3 - Article

SN - 1369-8931

VL - 23

JO - CEPMLP Annual Review

JF - CEPMLP Annual Review

M1 - 1

ER -