Regulatory delays hinder energy investment in northern Peru

Regulatory delays and insufficient reforms are hindering energy investments in northern Peru, according to Carlos Gomero, a partner at LQG Energy & Mining Consulting. During the PERÚ ENERGÍA Norte 2026 forum, Gomero noted that while generation and transmission sectors have seen reforms, electrical distribution remains “completely postponed.”

Gomero criticized the current remuneration model for distributors, which relies on efficiency and periodic tariff reviews, stating that efficiency gains have become marginal and could jeopardize infrastructure maintenance and investment. He also highlighted that state-owned companies face significant hurdles, including limitations on contracting, financing, and debt capacity, even as they face pressure to generate profits.

To address the growing energy demand in the north, Gomero suggested developing wind projects, natural gas thermal plants, and expanding transmission lines. However, he warned that bureaucratic barriers and a lack of adequate regulatory conditions may prevent these local generation projects from becoming feasible, increasing pressure on existing transmission lines.