Global Smart Grid Market Growth Opportunity In Peru

Smart Grid Market Growth Opportunity in Peru Connect With Us: Published By: Goldstein Research

Smart Grid Opportunities in Peru 1. Installed Capacity Electricity Distribution of Electricity Generation Thermal & Hydroelectric Sources, 2016-2024 2016

XX%

2024

Total Capacity Generated by Thermal & Hydroelectric Sources, 2016-2024

80% 85%

2016

2024

Distribution of Peru’s Electricity Installed Capacity, 2016-2024

70%

XX%

60%

2016

2024

XX% XX%

30%

40%

20% 15% Hydroelectric Plants

Thermal Sources

Source: Goldstein Research

Source: Goldstein Research

Distribution of Investment on Electricity Sector , 2016

20.2 5% 54.4 25.3 3% 2% Generating Companies

Distributing Companies

Rural Electrification Work

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Electricity Market

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Self-Consumption

National Grid

Local System

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Electricity generation is not evenly divided between hydroelectric plants and conventional thermal plants. Thermal energy is utilized in operation during peak load periods or when hydroelectric output is curtailed by weather events. This “underuse” of the country’s thermal capacity is due to the high variable costs of thermal generation To reduce the country‘s reliance upon hydroelectricity, the Peruvian government has encouraged greater investment in gas-fired power plants Electricity generation increased at a rate of XX% during 2015 owing to existing positive conditions for thermal generation through the use of natural gas in new plants and also to an increase in hydroelectric generation due to the availability of hydrological resources in the existing hydroelectric facilities www.goldsteinresearch.com

Smart Grid Opportunities in Peru 3. Distribution of Electricity Commercialization of Electricity by Distribution and Generation Companies, 2016-2024

63%

70%

2016

71%70%

2024

37%

Distribution Companies

Electricity Distribution Private Vs Public Companies, 2016-2024

30%

Generation Companies

Private Companies

21%

5%

4%

4%

4%

0% Edelnor

Enersur

Edegel

ElectroperuHindrandina TermoselvaElectroandes

Source: Goldstein Research Copyright

2024

50% 45%

Existing Clients

Private Utilities

Source: Goldstein Research

8%

5% Luz del Sur

2016

Public distribution companies are responsible for supply of XX% electricity to the existing client while XX% to the private ones.

15% 9%

55% 50%

 In 2016, 22 distribution companies commercialized XX% of the total electricity while XX% is commercialized by generation companies

20%

10%

Public Companies

Source: Goldstein Research

Companies Share (%) of Electricity Distribution, 2009

21%

2024

29%30%

Source: Goldstein Research

25%

2016

Public Distribution Company Supply Rate (%), 2016-2024

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Private companies dominate the public companies in electricity distribution. Major companies for sale are: Luz del Sur (21%), Edelnor (21%), Enersur (9%), Edegel (8%), Electroperú (5%), Hidrandina (4%), Termoselva (4%) and Electroandes (4%) www.goldsteinresearch.com

Smart Grid Opportunities in Peru 4. Energy Demand Consumption Share (%) of Economic Sectors, 20162024

67% 66%

2016

2024

Energy Demand (MW) of Major Projects, 2009

Cañariaco, La Granja, Michiquillay

120

124

Galeno

24% 22% 19% 22% 3%4% Industrial

Residential

Commercial

Mining Industry Electricity Generation Share (%) , 2016

Thermal Power Plant

140

Rio Blanco copper project

Public Lighting

Source: Goldstein Research

27.00 %

150

Expansion of Antamina,

73.00 % Hydroelectric Power Plant

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0

Source: Goldstein Research

20

40

60

80

100

120

140

160

 Mining and oil and gas are energy-hungry sectors and have many sites in remote areas, which will possibly require their own source of power generation  Peru is attracting huge levels of FDI in the extractive industries (mining in particular) with estimated investments of almost USD 50 billion expected over the next 6 years  There are opportunities in energy generation, with over USD 1.1 billion being invested in 2009 in various generation, distribution and transmission projects  Large infrastructure projects for airports, ports and land transportation will create a larger energy demand in the near future too www.goldsteinresearch.com

Opportunities & Recent Activities in Latin America IEEE PES Innovative Smart Grid Technologies Latin America

Primary aim of the smart airports is to make systems interconnected, intelligent and effortless access of passengers. Globally, two thirds of airports are planning major developments in passenger effortless selfservice solutions to provide better services.

Recent Activities

RENION Biogas GmbH & Co. KG acquired 5 MW biogas feed-in project from Schmack Biogas AG at a price of USD 13.5 million and aiming to reduce the transportation distance of raw materials for Smart Airport Solutionss

m a S

Latin America Internet of Things Ecosystem and Trends CIS: Smart Grid

Emergence of Internet of things (IoT) provides innovative connectivity platforms for smart devices and systems covering variety of applications. IoT applications start from small objects to manufacturing units and growing to areas such as smart cities.

Innovative Approaches

Applications of IoT are also expanding in all aspects of transportation systems (passengers, vehicles and infrastructure). Growing air traffic and volume of passengers led the airport management to adapt advanced and connectivity solutions to become more proactive minimize Copyright Goldstein Research, All Rights Reserved

e l p

In 2010, Sweden has invested USD 18.8 million to construct world's first smart for Liquefied Biogas

Rhodia acquired Econcern Group’s participation in six pilot biogas production projects located in China and Vietnam . Rhodia aims to gain huge profit through its first business development investment in biogas technology

Walmart has installed biogas systems at two stores in southern California . Each with capacity of 400kW, which can generate approximately 3.4 million kWh power annually

The Anheuser-Busch brewery is targetting to use ladfill biogas as an alternative fuel source in Houston, U.S. Over 55 % of the Anheuser-Busch passenger ‘s fuel demand will be completed by biogas

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