Deep Dive into Peru’s Power-Generating Technology Costs until 2035

Abstract: The desire to know what the future might bring has always been part of the human nature and as human beings, we have extrapolated that desire to most aspects of our surroundings. Energy is a basic need for human development, and thus, energy deployment has not been exempt from that desire. Nowadays, energy models have become a standard tool to assess many areas of the energy sector, including projections of future energy costs. Statkraft AS, in an attempt to strengthen its position within the emerging markets where it is present, has developed a power cost projection model based on macroeconomic indicators and capable to integrate learning rates from experience curves. The model seeks to provide the future energy costs (CAPEX & LCOE) of selected technologies, namely, onshore wind, solar PV and CCGT, until 2035. This study explores the model’s theoretical foundations and addresses its results within the Peruvian energy market.