Peru's Potential as Hydro Power Plant Developer and Electricity Exporter Attracts Investors Toward its Electricity Industry, Finds Frost & Sullivan

Peru's Potential as Hydro Power Plant Developer and Electricity Exporter Attracts Investors Toward its Electricity Industry, Finds Frost & Sullivan PR Newswire BUENOS AIRES, Argentina, Nov. 5, 2012 - Low costs of production and strong government support give Peru the opportunity to become the regional electricity hub BUENOS AIRES, Argentina, Nov. 5, 2012 /PRNewswire/ -- Peru has the third highest hydro power generation potential in South America and oil reserves estimated in 532.7 million barrels. The substantial Camisea natural gas reserves and significant demand from neighboring countries could turn the nation into a regional hub of electricity production. New analysis from Frost & Sullivan (http://www.energy.frost.com), 2011 Updated Overview of the Peruvian Electricity Industry, finds that the industry earned revenues of $1.02 billion in 2011 and expects this to reach $1.45 billion in 2016, at a compound annual growth rate of 5.5 percent. It had an installed capacity of 7,986 MW in 2011 and is expected to grow to 11.7GW by 2016. Peru's strong economic growth has spawned more development, which, in turn, has increased electricity demand and initiated rural electrification projects. The Government's attempts to improve access to electricity played a major role raising electricity consumption, as well as driving the uptake of electricity supply equipment. On the back of these efforts, rural electrification shot up from 80.0 percent in 2008 to almost 92.0 percent in 2011.