Peru’s Ministry of Energy has proposed market-based reforms for complementary electricity services to improve the stability of the electricity grid amid increasing solar and wind energy generation.
The Peruvian Ministry of Energy and Mining (MINEM), through Ministerial Resolution No. 171-2026-MINEM/DM, has published a draft decree to approve regulations for additional services and to amend existing rules regarding the Law on Electricity Concessions and the Wholesale Electricity Market.
The proposal aims to regulate the provision, reimbursement and supervision of complementary electricity services, as the penetration of solar and wind energy into the Peruvian energy system increases.
A key change is the shift from an administrative, operational framework to a market-based model, allowing different technologies to compete to provide these services. MINEM said the reform aims to address the lack of clear economic signals in a segment crucial for maintaining frequency, voltage, operating reserves and other system support functions.
The draft also opens participation to new providers, including energy storage systems and other non-traditional players. It introduces a cost allocation principle based on causality, which means that costs are allocated to agents responsible for system deviations or instability, including producers, unregulated users and distribution companies.
The Economic Operation Committee of the System (COES) would continue to play a central role in the operation and assessment of the system, with the obligation to assess annually, per service, whether competitive conditions exist.
Meanwhile, the Supervisory Agency for Investments in Energy and Mining (OSINERGMIN) would be responsible for approving price ceilings and monitoring market operations. MINEM would retain its regulatory role and authority to authorize service providers.
The proposed reform reflects the need to adapt the Peruvian regulatory framework to the increasing variability resulting from the growth of renewable energy. It aims to support the integration of technologies such as battery storage while reducing inefficiencies in the allocation of balancing and reserve services.
Peru will have deployed approximately 454 MW of utility-scale solar capacity by 2025, bringing the cumulative installed PV capacity to approximately 952 MW, according to the government.
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