One of the key priorities for the country is “inclusive electrification” as 30% of the rural populations in the Amazon lacks access to electricity. Although the country has good solar and wind potential, the reliance on natural gas and hydro is expected to continue with a focus on expanding transmission coverage across the country.
Mines in Peru are almost all connected to grid, with about 50% of copper and gold production having transitioned to renewable PPAs. Skarn does not have yet have a view on how the transition affects power costs for the miners, but what is clear is that reliance on hydro introduces seasonal volatility with marginal costs peaking at $180/MWh in 2023 (also related to scheduled maintenance), and $41/MWh in 2024. This compares with annual lows of $23/MWh and $27/MWh in 2023 and 2024, both realised in the month of December.
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In July, we will be hosting an SDQ briefing following the launch of the 2025 Q2 edition in which myself and Mark Fellows, CEO, will discuss the trend on decarbonisation targets and insights from the latest publication of sustainability reports for the leading mining companies.
This event will take place twice, appropriate for those based in EMEA & Americas time zones and APAC time zones. Please click below to register:
