Peru is a rapidly developing economy with a nationally developed plan called Peru’s Planning for Climate Change (PLCC). Its industries rely heavily on natural resources and require high amounts of energy for steel manufacturing, component manufacturing, textiles, etc. Peru is unique because the majority (99.5%) of its registered businesses are small and medium sized enterprises (SMEs). These SMEs, due to business management and organization, use a disproportionate amount of energy compared to larger entities.
The PLCC recognizes that energy efficiency is key to meeting its climate goals and helping grow the economy while reducing emissions. The PLCC identified that helping SMEs achieve energy efficiency transformations could be a scalable way to reach climate and emission goals. The PLCC identified three major barriers to energy efficiency in the SMEs:
Lack of access to financial systems to obtain capital for the necessary investment.
Lack of capacity or employee experience in SMEs with energy efficiency upgrades
Lack of economic incentives as the price of electricity in Peru is one of the lowest in South America
To overcome these barriers the Peruvian government launched 12 pilot programs to help SMEs achieve energy efficiency upgrades. The pilot programs were selected to include a diverse set of industries and focused on highly re-producible methods. From the pilot studies several best practices were identified.
Some of the pilot projects required little capital but the SME owners were still wary or skeptical of the EE upgrades. In cases such as this it was discovered that a combination of these best practices was necessary for successful project completion.