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

This report details a project aimed at increasing energy efficiency among small and medium-sized enterprises (SMEs) in Peru. It identifies systemic barriers to energy efficiency, presents findings from a pilot study of 12 SMEs in Lima, and provides recommendations for government and private sector interventions to catalyze energy savings and support Peru's climate goals.

• Energy efficiency is a strategic priority for the Peruvian Government, integrated into its Nationally Determined Contribution (NDC) under the Paris Agreement and the 'PlanCC' (Planning for Climate Change) project to mitigate climate change.
• SMEs represent 99.5% of all registered companies in Peru and likely face proportionately higher energy costs than larger firms, particularly within the unregulated electricity supply market.
• A pilot study of 12 larger SMEs in Lima, primarily in manufacturing sectors like textiles, glass, and metal processing, demonstrated significant potential for energy savings. The study found an average reduction in energy consumption of 15%, total annual financial savings of US$750k across the group, and an average payback period on investment of approximately two years.
• Common energy-saving opportunities identified in the pilot include improving day-to-day energy management, replacing old lighting with LEDs, fixing leaks in compressed air systems, and implementing heat recovery in production processes.
• Several systemic barriers hinder SME energy efficiency in Peru, including a lack of awareness and technical capacity, a lack of stringent energy efficiency standards, low energy prices (sometimes due to subsidies) that reduce the incentive for investment, and a lack of dedicated financial mechanisms for energy efficiency.
• The report recommends that the national government take ownership of the challenge by conducting in-depth research on SME energy demand, improving coordination between the Ministry for Energy and Mines (MINEM) and the Ministry of Production (PRODUCE), and establishing standards for energy efficiency audits.
• Financial institutions in Peru generally lack the technical expertise to assess energy savings as a predictable source of loan repayment, leading them to perceive energy efficiency investments in SMEs as high-risk.

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} }