Evaluation of the Energy-Capacity Split for System Balance and the Competitiveness of Renewable Energy in Peru after Law 32249

This study evaluated how the energy and capacity split introduced after Law 32249 can support system balance and improve the competitiveness of renewable energy in Peru by remunerating electrical energy and firm capacity as separate products. The adequacy driver was defined using the 2025 to 2034 Efficient Generation Requirement under dry season conditions, and 2027 was selected as the focal milestone because the cumulative requirement reaches 600 megawatts beyond the committed projects window. A 2027 renewable led portfolio was designed to deliver 600 megawatts of firm capacity using hydropower support, wind with a conservative effective load carrying capability credit, solar made peak deliverable through a four hour battery energy storage system, and efficient combined cycle natural gas backup, yielding 3,662 gigawatt hours per year of net energy. Under a decoupled Regulated Market and Free Market contracting structure, the portfolio generated 154.3 million United States dollars per year from energy sales and 46.7 million United States dollars per year from capacity payments under a Basic Capacity Price cap.