Peru opens complementary services market to support renewables

<p class="p1"><span class="s1">Peru’s energy ministry has proposed market-based reforms for complementary electricity services to improve grid stability amid rising solar and wind generation.</span></p><p><strong>From <a href="https://www.pv-magazine-latam.com/2026/04/21/el-ministerio-de-energia-y-minas-de-peru-publica-proyecto-de-reglamento-para-impulsar-las-energias-renovables/" rel="noopener" target="_blank">pv magazine Latam</a></strong></p>
<p>Peru’s Ministry of Energy and Mines (MINEM) has published, via Ministerial Resolution No. 171-2026-MINEM/DM, a draft decree to approve regulations for complementary services and amend existing rules governing the electricity concessions law and the wholesale electricity market.</p>
<p>The proposal aims to regulate the provision, remuneration and oversight of complementary electricity services, as solar and wind penetration increases in Peru’s power system.</p>
<p>A key change is the shift from an administrative, operational framework to a market-based model, allowing different technologies to compete to provide these services. MINEM said the reform is intended to address the lack of clear economic signals in a segment critical for maintaining frequency, voltage, operating reserves and other system support functions.</p>
<p>The draft also opens participation to new providers, including energy storage systems and other non-traditional players. It introduces a cost-allocation principle based on causality, meaning charges would be assigned to agents responsible for system deviations or instability, including generators, unregulated users and distribution companies.</p>
<p>The Economic Operation Committee of the System (COES) would retain a central role in system operation and assessment, with a requirement to evaluate annually, on a service-by-service basis, whether competitive conditions exist.</p>
<p>Meanwhile, the Supervisory Agency for Investment in Energy and Mining (OSINERGMIN) would be responsible for approving price caps and overseeing market operations. MINEM would maintain its regulatory role and authority to authorize service providers.</p>
<p>The proposed reform reflects the need to adapt Peru’s regulatory framework to increasing variability driven by renewable energy growth. It aims to support the integration of technologies such as battery storage while reducing inefficiencies in the allocation of balancing and reserve services.</p>
<p>Peru commissioned about <a href="https://www.pv-magazine.com/2026/01/07/peru-adds-454-mw-of-large-scale-pv-in-2025/" rel="noopener" target="_blank">454 MW of utility-scale solar capacity in 2025</a>, taking cumulative installed PV capacity to roughly 952 MW, according to the government.</p>