Article

Peru's hydropower sector, which has historically provided reliable electricity, is shifting as the country embraces a diversified energy strategy. In 2024, large hydropower represented nearly 30% of installed capacity and 47% of generation, but is projected to see a decline in its share over the next decade.

Despite an increase in capacity from 4.9 GW in 2024 to 6.2 GW by 2035, annual generation is expected to drop to 27.1 terawatt-hours due to climate challenges and competition from renewables. Significant investments, estimated at $2 billion from 2025 to 2030, will focus on strategic hydro projects. Hydropower will increasingly serve as a stabilizer within a growing mix of solar and wind energy, reflecting policy shifts towards competitive energy generation.