Catalysing energy efficiency in small and medium-sized enterprises in priority sectors in Peru

The report identifies that while Peruvian SMEs represent 99.5% of registered companies and face higher proportional energy costs than large firms, significant barriers—including lack of information, low economic incentives due to low energy prices, and limited financial mechanisms—hinder energy efficiency adoption. A pilot study of 12 SMEs in Lima's energy-intensive sectors (primarily manufacturing) demonstrated a strong business case for investment, with an average reduction in energy consumption of 15%, total annual financial savings of US$750k, and an average payback period of two years. Key recommendations include government-led market analysis, improved auditing standards, and the creation of partnerships between finance providers, consultants, and equipment suppliers.

• SMEs constitute the vast majority of the Peruvian business landscape, representing 99.5% of all registered companies, and are likely to face higher proportional energy costs than larger enterprises.
• A pilot study of 12 SMEs in Lima, mostly in manufacturing sectors like textiles, glass, and metal processing, showed an average energy consumption reduction of 15% and total annual financial savings of US$750,000.
• The pilot study established a strong financial case for energy efficiency, with an average investment payback period of two years and a potential cumulative saving exceeding $8.9 million over 10 years for the 12 businesses.
• Primary barriers to SME energy efficiency in Peru include a lack of awareness and capacity, absence of stringent standards for technologies and installers, and low energy prices (some of the lowest in Latin America) which reduce the attractiveness of investment.
• Financial institutions in Peru generally lack the technical expertise to assess energy savings as a predictable fund source for loan repayment, leading to a perception of high risk for SME energy investments.
• Common technical opportunities for energy savings identified in the pilot include improving day-to-day energy management, transitioning to LED lighting, fixing compressed air leaks, and implementing heat recovery in production processes.
• The report recommends that the national government prioritize energy efficiency at a senior level, conduct in-depth research on SME demand, and improve coordination between the Ministry for Energy and Mines (MINEM) and the Ministry of Production (PRODUCE).

APA

Wedgwood, P., Munoz, A., Tobin, D., Fitzherbert-Brockholes, S., & Amevenu, D. (2017). Catalysing energy efficiency in small and medium-sized enterprises in priority sectors in Peru. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Catalysing-energy-efficiency-in-small-and-medium-sized-enterprises-in-priority-sectors-in-Peru.pdf

Chicago

Wedgwood, Paul, Ana Munoz, David Tobin, Susannah Fitzherbert-Brockholes, and Daphne Amevenu. Catalysing energy efficiency in small and medium-sized enterprises in priority sectors in Peru. Climate and Development Knowledge Network, 2017. https://cdkn.org/sites/default/files/files/Catalysing-energy-efficiency-in-small-and-medium-sized-enterprises-in-priority-sectors-in-Peru.pdf.

Wikipedia

{{cite report |last1=Wedgwood |first1=Paul |last2=Munoz |first2=Ana |last3=Tobin |first3=David |last4=Fitzherbert-Brockholes |first4=Susannah |last5=Amevenu |first5=Daphne |title=Catalysing energy efficiency in small and medium-sized enterprises in priority sectors in Peru |publisher=Climate and Development Knowledge Network |date=July 2017 |url=https://cdkn.org/sites/default/files/files/Catalysing-energy-efficiency-in-small-and-medium-sized-enterprises-in-priority-sectors-in-Peru.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wedgwood2017catalysing, author = {Wedgwood, Paul and Munoz, Ana and Tobin, David and Fitzherbert-Brockholes, Susannah and Amevenu, Daphne}, title = {{Catalysing energy efficiency in small and medium-sized enterprises in priority sectors in Peru}}, institution = {Climate and Development Knowledge Network}, year = {2017}, month = jul, url = {https://cdkn.org/sites/default/files/files/Catalysing-energy-efficiency-in-small-and-medium-sized-enterprises-in-priority-sectors-in-Peru.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }