Regulatory framework for electricity flexibility — Peru.
Distributed generation, battery storage status and the corporate PPA framework — the state of the law and its grey areas.
Peru has no rewarded curtailment mechanism comparable to the French NEBEF scheme to date. Demand-side flexibility currently runs only through bilateral contracts ("usuarios libres") — the tables below distinguish regimes in force from regulations still under consultation.
Generation, self-generation and sale contracts
| Regime | Remuneration / pricing mechanism | Threshold / cap | Regulatory status | Point of attention |
|---|---|---|---|---|
| Bilateral contract — free user ("usuario libre") | Price freely negotiated between the parties | Contracted power > 200 kW (free-user threshold, Law 28832) | In force | Relevant route for a corporate PPA outside the public scheme — still a loosely documented market category |
| RER auctions (Legislative Decree No. 1002) | Auctioned tariff + RER premium if the spot price is below the tariff (SEIN compensation fund, financed by all users) | Projects < 20 MW (wind, solar, biomass, geothermal, tidal); 20-year contracts | In force — 4 auctions plus 1 supplementary round since 2009 | Public scheme organized by OSINERGMIN, distinct from a bilateral corporate PPA; a long-term tender (2028-2042) is in preparation |
| Distributed generation / net meteringDraft | Consumption credits (net metering) — terms still under discussion | To be defined — regulation not finalized | Draft — Ministerial Resolution No. 439-2024-MINEM/DM, public consultation closed end of January 2025 | Not yet in force as of publication; confirm with MINEM before any decision |
Wholesale market and ancillary services
COES operates SEIN dispatch by merit order and computes the marginal cost every 15 minutes. Law No. 32249 (January 2025) creates an ancillary services market still being regulated, in which storage could act as a service provider.
| Mechanism | Nature | In force? | Key parameter | Limit / point of attention |
|---|---|---|---|---|
| Spot market (COES) | Marginal-cost dispatch | Yes | Variable cost declared by generators, recalculated every 15 min | No active demand-side role identified — flexibility is not directly remunerated there |
| Ancillary services (Law No. 32249)Draft | Potential external revenue for storage | No — regulation under consultation | Implementing regulation: Ministerial Resolution No. 171-2026-MINEM/DM (April 2026), comment period extended | Not yet in force as of publication — do not present as an operational scheme |
| Curtailment / demand response | — | Not identified | — | No dedicated mechanism identified to date; to be reassessed periodically |
Simplified view, for educational purposes, non-exhaustive and not constituting legal advice. Several mechanisms cited (distributed generation, ancillary services) are still at the draft-regulation stage as of publication — status to be re-verified before any investment decision.
Sources
- Legislative Decree No. 25844 — Electricity Concessions Law (1992)
- Law No. 28832 — Law to Ensure Efficient Electricity Generation Development
- Law No. 32249 (January 2025) — official text, El Peruano
- Legislative Decree No. 1002 — Promotion of renewable energy (RER)
- Ministerial Resolution No. 439-2024-MINEM/DM — Draft distributed generation regulation
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