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  • Peru's potential for hydroelectric development strong, says report

    A recent study by industry and market analysis firm Frost & Sullivan says Peru has the third highest hydropower generating potential in South America, giving the country an opportunity to be a regional hub of electrical production.

    Using data from the 2011 Updated Overview of Peruvian Electricity Industry, Frost & Sullivan says Peru's electric industry earned revenues of US$1.02 billion in 2011. That figure is expected to increase at a compound annual growth rate of 5.5% through 2016, when revenues will equal $1.45 billion.

    The report also says Peru's installed capacity -- currently 7,986 MW -- is expected to grow by 11,700 MW by 2016.

    "The main areas of growth for participants and industry entrants are gas, hydro, renewables, transmission and distribution infrastructure, as well as maintenance, repair, and overhaul for existing power stations," said Frost & Sullivan analyst Dominic Goncalves.

    Adding to Peru's increased capacity are a number of hydropower projects, including the 255-MW Santa Rita, 750-MW Santa Maria, 98.5-MW Santa Teresa and 406-MW Chaglla.

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