Project name: Delivery of climate compatible development in Peru through the identification and enablement of energy efficiency measures for business, and the building of self-sustaining local implementation capacity.

Peru’s high rate of economic growth has led to a substantial increase in total energy consumption, which is expected to continue to rise in the future. In the short term, this could lead to potential deficits in electricity supply as generation capacity struggles to keep pace with demand. This poses a danger to economic growth and business competitiveness if shortages lead to operational disruptions or additional costs to guarantee energy supply.

Peruvian companies have yet to display significant leadership in driving energy efficiency, and a market for energy efficiency services and financing has failed to gain traction. Potential reasons for this include:

• ‘Demand-side’ failure due to lack of understanding by business management of the need to drive serious energy efficiency efforts, framed in terms of both cost opportunity as well as risk reduction.
• ‘Supply-side’ failure due to relatively low levels of available energy efficiency expertise.

CDKN’s Business Partnerships project aimed to address both sides of the issue by establishing a group of corporate leaders in Peru to pilot real energy and financial savings (and carbon reductions), while simultaneously building capacity in the local expert services market. Specifically, the project was:

• Working with seven large corporates and their supply chains (where appropriate) to identify opportunities for energy efficiency and deliver impactful and highly replicable energy management plans, with measurable outcomes during the project’s lifetime.
• Using these projects and approaches as case studies to leverage a greater focus and adoption of energy management practices across Peruvian industrial and commercial sectors.
• Enhancing the skills and experience of energy management advisors in Peru to deliver effective energy efficiency programmes to corporates and supply chains through the adoption of proven, best practice business models established in the UK.
• Expanding the capabilities and resources across the energy management marketplace in Peru, including advisors, suppliers and financiers.

To achieve this, CDKN partnered with the Carbon Trust, The Environmental Technology Centre SENATI (CTA), Südesco Energy, and Peru 2021.

CDKN Funding: £113,500