Peru Hydroelectric Plants Guarantee Power Supply, Valdivia Says

By [bn:PRSN=1] Alex Emery []

Aug. 20 (Bloomberg) -- Peru, which had blackouts earlier this month, has enough hydroelectric generating capacity to cover energy demand over the next two years, Energy and Mines Minister Juan Valdivia said.

Peru won't have to ration electricity as reservoirs have enough water to power plants operated by Spain's Endesa SA, the largest generator in the Andean country, Valdivia said in an e- mailed statement.

Endesa's Etevensa power plant was shut for four hours Aug. 7, leaving at least 250,000 Lima homes in the dark. President Alan Garcia met with industry owners last week to push for energy savings after surging economic growth spurred a 12 percent increase in electricity demand in the first half.

Hydroelectric plants operated by Endesa, Duke Energy Corp. and GDF Suez SA generated 67 percent of Peru's electricity through the first half, according to a report on the Ministry's Web site. Electricity output rose 10.3 percent to 2,529 gigawatt-hours in June, the Ministry said.

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net.