Energy Transition in the Peruvian Mining Sector: Regulatory Approach or Just Private Self-Regulation?

Abstract

Nowadays, the world recognises the energy and mining sectors as essential activities for the economy and providers of some not inconsequential benefits such as potential economic growth, employment, local income and development, and private investment. In that regard, Peru is a country of ancient mining traditions, which has been preserved and cultivated by leading international companies that have been expanding the country’s mining activities. At the global and Latin American level, Peru is among the main producers of various metals (gold, silver, copper, lead, zinc, iron, tin, molybdenum, and tellurium, among others). This scenario reflects not only the abundance of resources and production capacity of the Peruvian mining industry, but also the stability of Peru’s economic policies, turning Peru into one of the key destinations for foreign investors on mining projects. However, the energy sector is simultaneously going through a transition stage to more renewable energies, and such energy transition is only achievable via strategic, coherent legislation that facilitates responsible investment and exploitation of resources. Consequently, this chapter’s focus is to discuss energy policy with emphasis on new regulatory developments in Peru, to give the reader a broad panorama of how the mining sector and the energy transition are regulated in country.