Regulation for the Promotion of Electric Investment in Off-Grid Areas (Reglamento para la Promoción de la Inversión Eléctrica en Áreas No Conectadas a Red)

The purpose of the Regulation is to establish regulatory provisions to promote the use of renewable energy to improve the quality of life of the population located in Off-grid areas.

The law establishes that it is not necessary to obtain sectoral rights, permits or licenses of any kind for all purposes of the installation, operation and maintece of the facilities referred to in the regulations, off-grid, since they are equipment that will be installed on the property of users.

In this context, Peru held the 1st off-grid renewable energy auction in 2014 for 15 year power supply concessions using solar PV. The bid guarantee per project was USD 1 million, the construction guarantee USD 10 million and the contract guarantee USD 2 million. The auction had a non-disclosed price cap. Three projects from the same bidder were awarded all contracts covering 500000 users in the North, Central and South zones. The only other bidder was disqualified for exceeding the price cap.

The Decree 20 of 2013 includes provisions to compensate concessions should grid extension reach their areas.

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