The Energy Transition in Peru

Peru stands as one of the most strategically significant countries in the global energy transition, not because of its power mix, but because of its exceptional mineral wealth. As a leading global producer of copper, silver, zinc, tin, and gold, alongside a broad portfolio of energy transition minerals such as molybdenum, bismuth, indium, and selenium. Peru has become indispensable to the raw material supply chains underpinning clean energy technologies. From electric vehicles and solar panels to wind turbines and grid storage systems, the minerals sourced from Peru’s highlands and Amazonian foothills are central to global decarbonisation efforts. However, Peru’s extractive advantage is complicated by deep-rooted governance challenges. Political instability, regulatory uncertainty, and social unrest, particularly in mining regions with Indigenous and rural communities, continue to disrupt investment and production. While the country is integrated into global trade and economic frameworks such as APEC, the CPTPP, and the IADB, its domestic policy environment remains fragmented, with resource governance often marked by conflict and contested development models. Peru’s energy matrix is still heavily reliant on natural gas and hydropower, with solar and wind accounting for a growing but limited share. The country faces the challenge of modernising its energy infrastructure while ensuring that its critical mineral exports are aligned with responsible sourcing, ESG compliance, and international climate goals. As geopolitical competition over critical minerals intensifies, particularly among China, the U.S., and the EU, Peru's mineral diplomacy, infrastructure capacity, and internal political cohesion shaping its future trajectory.