Article

Peru's hydropower, historically central to its electricity system, is undergoing a transition as the nation diversifies its energy portfolio. While large hydropower accounted for nearly 30% of installed capacity and 47% of electricity generation in 2024, its share is expected to decline over the next decade due to climate variability and competition from non-hydro renewables.

Investment forecasts indicate around $2 billion will flow into hydro projects from 2025 to 2030, focusing on strategic capacity and system flexibility. As Peru aims for a 40% emissions reduction by 2030, hydropower's role is evolving to support a more diversified energy mix.