Fitch Ratings expects generation capacity in Peru to increase by 4.4GW through 2019. This incremental capacity will result in a growth of generation by 40% since December 2013. Announced investments in generation and transmission appear sufficient to cover expected increases in demand and to provide an adequate reserve margin in the medium term.
Peru's electricity demand growth has typically followed the country's GDP growth rate and is supported by low per-capita consumption. After a 2014 affected by headwinds in the local economy, energy demand growth is expected to gain momentum in the next two years, driven by ongoing mining projects and large investments in infrastructure. Energy demand grew annually at an average of 6.7% over the past decade and is expected to grow at a similar pace in the coming years.
The full report 'Peruvian Electricity Sector - Demand Growth Driving Investments' is available on 'www.fitchratings.com' or by clicking on the link below.
Additional information is available at 'www.fitchratings.com'
Applicable Criteria and Related Research:
2015 Outlook: Latin America Power (Stability Despite Economic Slowdown)
Applicable Criteria and Related Research: Peruvian Electricity Sector
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=811748
2015 Outlook: Latin America Power (Stability Despite Economic Slowdown)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=833508
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