Peru Signs US$339 Million Power Grid Contracts With Engie for Four Regions

Electricity transmission towers at sunset. Peru’s four new projects add high-voltage links and substations in Piura, Lambayeque, Junín and Ayacucho. (Photo: Wikimedia Commons)

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ENERGY · PERU

Peru has signed US$339 million in contracts for four power transmission projects in Piura, Lambayeque, Junín and Ayacucho. The state agency ProInversión and Engie Transmisión Perú signed the concessions in Lima on Friday 2 October.

The government says the new lines and substations will give about 1.6 million people a steadier electricity supply. Engie reported winning the package on 30 June, after four international operators had bid for it.

What was signed on 2 October

ProInversión, the agency under the Ministry of Economy and Finance (MEF) that runs public-private tenders, signed for the state. The builder is a unit set up by Engie Energía Perú, the Peruvian arm of the French Engie group.

The concessions cover design, financing, construction, operation and maintenance under public-private partnership rules. Each runs for the construction period plus 30 years of operation, ProInversión said.

Engie told the securities regulator (SMV) that the contracts took effect on signing, Gestión reported. The 30 years count from each project’s start of commercial operation.

Where the US$339 million goes

Junín gets the largest share: a new Palián substation near Huancayo, estimated at US$123.96 million. That is about 36.5 percent of the total, according to a ProInversión project sheet dated 15 September and cited by Gestión.

Estimated investment in the four transmission projects signed on 2 October 2026, by region, US$ million; total US$339.36 million. Source: ProInversión project sheet of 15 September 2026, as reported by Gestión, 2 October 2026.

Piura follows with US$115.83 million for a 500-kilovolt link of about 115 kilometres and a new Pariñas substation. It is meant to carry more renewable power, mainly wind, out of the north.

In Lambayeque, US$89.73 million pays for 220-kilovolt links serving Olmos, Motupe and Jayanca. Ayacucho’s project is the smallest, at US$9.84 million for a line of about five kilometres.

Why Peru is adding transmission

The four projects form Group 1 of 17 drawn from Peru’s national transmission plans for 2023–2032 and 2025–2034. The Ministry of Energy and Mines (Minem) handed them to ProInversión in early 2023 and early 2025.

The government says the work will raise capacity and keep power flowing when part of the network fails. Gestión said the Lambayeque and Ayacucho links follow the N-1 standard, which keeps supply running if one component trips.

“Investing in electricity transmission is investing in competitiveness, decentralisation and territorial development,” said ProInversión’s executive president, Luis Del Carpio. He named irrigation schemes, ports and industrial parks as users that need reliable power.

The signing lands as the energy ministry itself enters a 120-day overhaul, covered in Peru Energy Ministry Enters 120-Day Reorganisation. A June decree had already changed the rules on stalled grid projects (see Peru Rewrites Electricity Grid Rules to Unstick Stalled Investment).

The slower side of the story

None of the four is due to deliver power soon. The ProInversión sheet plans commercial operation for 2031, Gestión reported.

Peruvian grid projects have often stalled for years, which is why the June decree was written. The package also carries a reference operating cost of US$9.23 million a year, according to the same sheet.

The pipeline is moving, though. ProInversión plans to award Groups 2 and 3 by the end of 2026, and Group 4 in early 2027.

What Is Not Yet Known

Neither ProInversión nor Engie gave a construction start date or a schedule for each site. It is also unclear whether the cost estimate will hold until 2031.

ProInversión did not say whether electricity bills will change once the lines enter service. Its figure of 1.6 million beneficiaries comes without a breakdown by region.

Who will build Peru’s four new transmission projects?

Engie Transmisión Perú, a unit set up by Engie Energía Perú, will design, finance, build, operate and maintain them. It signed the contracts with ProInversión, the state investment agency, on 2 October 2026.

When will the new power lines start operating?

A ProInversión project sheet dated 15 September sets commercial operation for 2031, Gestión reported. Each concession then runs for 30 years of operation and maintenance.

Which areas of Peru benefit from the US$339 million?

The works cover Piura, Lambayeque, Junín and Ayacucho. Named areas include Castilla and Pariñas, Olmos, Motupe and Jayanca, and Huancayo, Orcotuna and Pucará, about 1.6 million people in all.

Sources: ProInversión press release, 2 October 2026; Caretas, 2 October 2026; Gestión, 2 October 2026 (citing Engie’s filing to the SMV and a ProInversión project sheet of 15 September 2026).

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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