Jan 28, 2009
IDB supports creation of new sustainable energy matrix in Peru
Programs will support an integrated approach to developing conventional and renewable energy sources
Peru will develop a New Sustainable Energy Matrix that will encourage the growth of hydrocarbon and renewable energy markets in an environmentally and socially responsible framework, with financial and technical support from the Inter-American Development Bank.
The matrix is the centerpiece in a package of energy-related measures Peru has agreed to carry out under a $150 million programmatic policy-based loan (PBL) approved by the IDB Board of Executive Directors on January 28.
The PBL is a fast-disbursing instrument that will give the Peruvian Treasury resources to finance its priority programs. Under the sustainable energy matrix program, Peru has committed to implementing specific measures that will maximize the benefit derived from hydrocarbons and renewable energy resources, promote energy conservation and efficiency, and foster the application of environmental and social safeguards in projects.
This process involves studies, setting strategies, institution-strengthening, and development of standards and regulations. The results of these activities must be verified as a condition for disbursement of the IDB funds.
In addition to supporting the design and implementation of the new matrix, the program will focus on better integrating Peru’s primary energy sources and developing nontraditional renewable energy sources and bioenergy.
It will also develop energy efficiency measures, standards and consumer labels for household appliances and other equipment.
An important component of the program will focus on renewable energy as a means of contributing to climate change mitigation.
In recognition of growing public interest in energy investments, the program will include a Strategic Environmental Assessment and new approaches for ensuring citizen participation in the preparation of hydrocarbon-related projects. This activity will support the implementation of social responsibility and citizen participation mechanisms in calls for proposals, preparation of environmental studies, and environmental monitoring of energy projects.
IDB project team leaders Alejandro Melandri and Christiaan Gischler said that the preparation of the energy matrix project had already advanced some of its goals by fostering a dialogue among key energy stakeholders in Peru that placed initiatives and actions on a common footing of knowledge and created opportunities for intra-sector coordination and consensus-building.