Peru continues to expand its portfolio of large-scale photovoltaic generation. So far in 2026, five major solar projects have obtained definitive generation concessions, representing a total nominal capacity of 1247.9 MW , with developments distributed among Arequipa, Moquegua, Ica, and Tacna.
The largest of these is Ruta del Sol , by RDS Solar, with 323.078 MW in Moquegua. Its final concession was granted at the end of February.
In Arequipa, Sunny III , from Kallpa Generación, also received final authorization in February to develop 310 MW in the district of La Joya.
Mid-year, Yuramayo , with 245 MW , also in Arequipa, was added. For this project, the Ministry of Energy and Mines (MINEM) reported an estimated private investment of approximately USD 169 million .
During September, Arenarosa , owned by Orygen Perú, advanced with 169.82 MW in Ica. And the most recent development is Locumba , owned by GR Liblanca, with 200 MW in Tacna , whose final concession was published on October 4.
Thus, these five major developments account for 1247.9 MW of new concessions granted during 2026. In addition, on a different scale, the 1 MW SMI Photovoltaic Solar Power Plant also received its final concession during the year.
The new batch of authorizations joins a market that was already rapidly expanding its pipeline. In April, the Ministry of Energy and Mines (MINEM) reported 13 solar projects with final concessions totaling 2,402 MW and an estimated investment of USD 1,805.9 million . At that time, the agency estimated the country's installed solar capacity at 1,088 MW and projected reaching 3,490 MW by 2028 .
In addition to future projects, Peru is also continuing to add operational capacity. In June, the Sunny and Intipampa expansions began commercial operation, adding a combined 156.7 MW to the National Interconnected Electric System (SEIN) .
A market where price still matters, but it's no longer enough
The expansion of the Peruvian pipeline coincides with a moment of transformation for the global photovoltaic industry.
During the Future Energy Summit (FES) Peru 2026 , Tomás Harfuch , Sales Manager Andes of Jinko Solar, pointed out that cost continues to be one of the main constraints of projects in the region.
“The dollar per watt or the cost of the product continues to be predominant here in Latin America,” he said.
But the international scenario that allowed that cost to be brought down to exceptionally low levels also generated significant imbalances in the supply chain.
During the last few years, China has greatly expanded its photovoltaic manufacturing capacity, taking the market from a stage of scarcity and high prices to one characterized by a supply far exceeding demand.
Harfuch described precisely that route.
“Initially, we were in a scenario of low capacity and high prices, which prevented many projects from being carried out because there were other technologies with better performance or a better return on investment. Then, investment began in production capacity, and we reached another scenario where supply far exceeded demand,” he explained.
The consequence was a sharp drop in prices.
Continue reading
According to the executive, the market reached " extremely low prices, with many manufacturers even selling at a loss ."
Global data supports this interpretation. The International Energy Agency's Photovoltaic Power Systems Programme (IEA PVPS) Trends in Photovoltaic Applications 2026 report estimates that the world installed approximately 690 GW of new photovoltaic capacity during 2025 , a 15% increase over the previous year, reaching a cumulative total of 2.96 TW.
The organization identifies the low cost of the modules as one of the factors that allowed such a pace of expansion to be sustained, although it warns that the industry continues to be plagued by significant manufacturing overcapacity.
Current values still reflect that pressure. According to the Oil Price Information Service (OPIS), the benchmark for Chinese TOPCon modules below 645 W was approximately USD 0.108/W FOB China as of September 22, 2026 .
The impact also extended to manufacturers' balance sheets. In the first half of the year, JinkoSolar reported a net loss attributable to shareholders of 3.08 billion yuan , in line with a scenario that affected several of China's major producers.
Faced with this situation, Harfuch believes that the market could begin to move towards another equilibrium.
“From my perspective, I perceive that we are heading towards a slightly more stable market, with less volatility and more rational prices,” he predicted.
Technology is starting to gain importance
This potential change in scenario also alters the competition between suppliers.
While price remains a determining factor for plant CAPEX, the increasing scale of projects and the pursuit of higher production throughout their lifespan are beginning to shift part of the discussion towards other variables.
“The development of new products and technology in modules is becoming increasingly important, specifically regarding efficiency, bifaciality, and performance in different scenarios,” Harfuch noted.
This evolution can already be seen in some of the projects underway in Peru. Arenarosa , for example, includes approximately 298,000 bifacial photovoltaic modules of 570 Wp , a configuration that reflects the growing importance of technologies aimed at maximizing generation per installed area.
According to the Jinko Solar executive, this technological race also forces manufacturers to go beyond simply providing the equipment.
“All of this must be supported by an ecosystem: local, commercial and logistical support and technical assistance; not only the provision of modules, but also helping customers to design and evaluate plants,” he stated.
Therefore, he summarized the new competition in three variables: “Competitive price, better product and a supporting ecosystem.”
With almost 1.25 GW concentrated in five large concessions awarded during 2026 alone , Peru is preparing for a new stage of solar growth just as the international industry begins to discuss how to move away from a model marked by oversupply and extremely tight margins.
“Today, simply manufacturing in volume is no longer enough; we really need to invest in technology,” Harfuch concluded.