Despite minor forecast downgrades this quarter, Peru's power sector remains on track for astrong growth over the coming decade. A large number of hydropower and thermal projects will allow thecountry to meet the rapidly increasing domestic power demand, which is driven by the population growthand economic expansion, especially in the energy-intensive mining sector. Project delays due to strongopposition from local populations to large infrastructure projects, combined with bureaucraticinefficiencies and corruption, are key risks for foreign investors.
Latest Updates And Structural Trends
This quarter we revised down our forecasts for Peru's power sector due to slow project implementationprogress in the hydro power sector. The country's total power generation is now forecast to grow at anaverage annual rate of 4.6% between 2017 and 2026, while the country's capacity will experience aslightly slower expansion of 2.6% per annum during the same period.