Peru’s government is taking steps to face a looming energy problem in the country.

According to Andina, a multi-sectoral commission has been set up to facilitate investment in the country’s energy sector. It will be given 180 days to complete its work in developing a plan to help smooth the way for investment in the area.

According to an El Comercio story published last week, consumers in much of Peru can expect an increase in the price of energy because the electrical grid has not been expanded.

Among the projects that have been stalled is an electrical line which would run through the protected area of Choquequirao, as well as a line connecting a planned plant in Chilca with Montalva. As a result, energy-producers will be forced to use inefficient diesel plants in Ilo, which will result in higher consumer prices.

In the north, parts of Tumbes, Piura, Lambayeque, La Libertad and Cajamarca have had temporary electrical cuts. Energy has also had to be purchased from neighboring Ecuador.

Energy-thirsty operations in the mining and manufacturing sectors consume much of the electricity that flows in Peru, and those sectors could face huge losses if energy use was restricted.
According to analysts, Peru’s energy sector has been underfunded for years, and needs $1 billion of investment per year over the next five years in order to solve its infrastructure problems.

The multisectoral commission is tasked with pushing the different ministries to optimize their permit and review processes and provide faster attention to investors in the energy sector. It will also seek to improve the investment climate in the sector, which has been at the center of various social conflicts. The commission will be composed of representatives from the Ministries of Economy and Finance, Energy and Mines, and Culture, as well as representatives from the State Protected Natural Areas Service and the National Water Authority.