Peru aims to publish the regulations for complementary services before the end of 2026 , according to Guillermo Shinno, Minister of Energy and Mines , who confirms that the regulations are part of the Government's regulatory agenda, along with the provisions corresponding to electricity tenders.
"All regulations must be released no later than December," Shinno stated, speaking at the PECIER-FISE 2026 International Electricity Sector Expo.
Law 32249, published in January 2025, formally incorporated the complementary services market into the Peruvian electricity framework , while the Ministry of Energy and Mines is moving forward with the regulations intended to establish the operating and administrative conditions of these services.
As part of the process, the agency published the draft regulation through Ministerial Resolution No. 171-2026-MINEM/DM, dated April 17, 2026 , which includes modifications to the Regulations of the Electricity Concessions Law, the Regulations of the Wholesale Electricity Market, and the Regulations of the Economic Operation Committee of the National Interconnected System (COES).
However, the eventual approval of the regulations does not automatically imply that all battery capacities will receive remuneration, as their economic recognition will depend on the final provisions and the mechanisms established for each service.
This difference is particularly relevant in Peru due to the current conditions of the electricity market, where storage faces limitations in obtaining profitability solely through the purchase and sale of electricity at different times.
The regulatory definition could open up new business opportunities for battery energy storage systems (BESS) , by recognizing features associated with the stability of the electrical system, such as synthetic inertia and frequency regulation.
In this context, manufacturers like Huawei are already developing photovoltaic and storage solutions with grid-forming technologies, capable of providing support services to the grid and expanding the commercial applications of projects beyond energy arbitrage.
During the Future Energy Summit (FES) Peru , Camilo Ordóñez Medina, Senior Power Grid Expert at Huawei Digital Power , highlighted the importance of electricity markets evolving towards schemes that remunerate these capabilities and allow for diversification of income from storage systems.
"Many countries in Europe are already implementing market models for complementary services and capacity markets, which I believe is a fundamental issue to enable the efficient development of storage systems," said Ordóñez Medina.
The specialist suggests that hybrid photovoltaic and BESS projects can expand their business models through payments for services that contribute to the security and reliability of the electricity supply.
"It will allow these systems not only to be part of an energy sales business or the battery making an energy displacement in time, but also to have capabilities to contribute to short circuits, to contribute inertia, to regulate frequency," the executive explained.
For his part, César Butrón, president of the COES Board of Directors , warned during FES Peru that the presence of natural gas reduces economic opportunities linked to price arbitrage.
"For now, storage in Peru will only have two possible sources of income: the provision of synthetic inertia or the provision of primary frequency regulation, both of which are mandatory for now and are included in the draft regulations," Butrón pointed out.
The executive also believes that projects aimed at ensuring power availability may require different mechanisms than those planned for the provision of complementary services.
"As they are doing in other countries, which is to tender storage so that it is there and is paid for being there," the president of COES stated.
Thus, remuneration for ancillary services and capacity contracting emerge as two distinct mechanisms to promote energy storage in Peru. While the former would allow for the recognition of certain services necessary for the system's operation, the latter could facilitate investments in facilities designed to guarantee power availability during critical situations.
What technologies could take advantage of the new regulatory framework?
From a technological perspective, Huawei identifies four major challenges for utility-scale photovoltaic plants: reducing the levelized cost of energy (LCOE), improving operation and maintenance efficiency, strengthening grid stability, and ensuring the safety and reliability of systems .
To address these needs, the manufacturer is working on new inverter architectures and storage platforms, with artificial intelligence tools to optimize operational tasks and advanced power support capabilities.
"As more variable energy sources, solar and wind, come online, grid stability is facing problems, especially regarding voltage and frequency stability," warned Ordóñez Medina.
Given this scenario, the executive highlights the development of grid-forming technologies, which allow power electronics equipment to actively contribute to the dynamic behavior of the electrical system.
One of its main features is the delivery of short-circuit current up to six times the nominal current , with configurations of 1, 2, three or six times, depending on the needs of each bus or substation.
Furthermore, the solution allows for the configuration, via firmware , of a virtual inertia of between zero and 20 seconds , which expands the possibilities of response to frequency variations.
These functions are complemented by power oscillation damping (POD), through the delivery or absorption of active power from the batteries, as well as the ability to perform primary, secondary and tertiary frequency regulation.
The platforms also incorporate black start , designed to facilitate the restoration of supply in the event of interruptions, and switching between connected and isolated operation to power certain local loads.
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These features are part of the technical capabilities that manufacturers seek to incorporate into storage systems, although their monetization will depend on the services that the Peruvian electricity market actually recognizes.
"In other words, it's not just that my business model allows me to put a battery in parallel with my solar plant to do some arbitrage or peak shaving, but also that the electricity market can pay me for offering additional services to the grid," the company representative explained.
In particular, the Huawei representative suggests that commercial schemes should consider both remuneration for contributing inertia to the system and economic recognition of available power to meet periods of high demand.
"For example, that they could pay me for contributing additional inertia to the grid or that they could pay me for having a certain amount of MW available to deal with peak hours or difficult situations in the electrical system," he explains.
Huawei presents new PV+BESS solutions with grid-forming capabilities
In parallel with regulatory evolution, Huawei is developing a new generation of equipment aimed at improving the performance of solar plants and reducing the costs associated with their construction and operation.
During FES Peru, Ordóñez Medina presented the 506 KTL solar inverter , equipped with grid-forming capabilities, including fast reactive power response, frequency support through virtual inertia and voltage control even at night.
The equipment incorporates an architecture with 1,600 volts DC and 1,000 volts AC , representing a 25% increase in AC output voltage compared to the previous technology.
According to the manufacturer, the new inverter also increases its power capacity by approximately 50% , accompanied by 11 MVA transformation solutions that allow for optimization of the design of photovoltaic installations.
"With this, we are bringing a slightly higher voltage to the market, thus improving BOS cost issues at both the DC and AC levels," the executive explained.
The company maintains that this configuration allows for a reduction in balance of system (BOS) costs, both in direct current and alternating current, by decreasing requirements associated with connections, equipment, foundations, and physical spaces.
In terms of electrical stability, the inverter also features fast reactive power response and night voltage control, as well as functionalities designed to improve the performance of installations in weak areas of the grid.
Ordóñez Medina points out that this technology has already been tested and that there are projects in China operating with the new capabilities. As a commercial reference, Huawei presents a 350 MW installation in Shandong, China, where it reports a BOS cost reduction of 1.67 cents per watt.
In another 195 MW project in Yunnan , the reported decrease amounts to three cents per watt, accompanied by an increase in energy efficiency.
The company also highlights a 2.2 GW installation in the Philippines , where system balance savings exceed $40 million, according to the manufacturer's results.
In terms of commercialization, Huawei reports that it has sold more than one million units of the 330 KTL inverter since its launch in 2022 and aims to achieve a scale equivalent to 500 GW of commercialized solar power with the new generation.
"At the Latin American level we already have some projects sold, they have not yet entered operation; the first ones are in Argentina and Chile, and we hope that in Peru we will soon begin to see this new technology already in operation," Ordóñez Medina anticipated.
Furthermore, the manufacturer presents its new Luterra storage solution, with a capacity of 6.26 MWh per container , aimed at improving energy density and optimizing investment costs.
The platform achieves a declared energy density of 177 kWh per square meter and includes compact architectures for 100 MWh storage projects, with 13.5 MVA transformers.
One of the standout features is the connection via bars between the battery containers, a configuration that allows for reduced separations and improved use of physical space.
According to Huawei, these modifications help optimize both capital expenditures (CAPEX) and operating expenses (OPEX) , variables relevant to the competitiveness of future storage projects.
The company also offers a hybrid PV+BESS platform using AC coupling, designed to integrate photovoltaic generation and batteries within a single solution. This architecture supports applications related to energy sales, generation shifting between time zones, and providing grid support services.
For the manufacturer, the combination of lower technological costs and new remuneration opportunities constitutes one of the ways to expand energy storage business models.
"Therefore, today's call from Huawei is for us to explore these new technologies and these new market trends," Ordóñez Medina concluded.
In Peru, the publication of the ancillary services regulations before the end of 2026 would mark progress in defining the conditions for participation of BESS , especially for services related to synthetic inertia and frequency regulation.
Thus, while manufacturers like Huawei are advancing with technologies capable of offering multiple electrical features, the Peruvian market remains attentive to the regulatory definitions that will determine which of those capabilities can translate into new revenue for storage projects.
Following its stops in Peru, Colombia, and Chile, the Future Energy Summit (FES) will hold the final event of its 2026 international tour on November 5th in São Paulo, Brazil. The event will bring together leading figures in the sector, from companies such as CATL, Huawei, Statkraft, CTG Brasil, Acciona Energia, and Casa dos Ventos , along with investors and industry associations, to analyze investment opportunities in renewable energy, energy storage, and upcoming electricity auctions. The event will take place at the InterContinental São Paulo Hotel, against a backdrop of anticipated contracting for BESS systems and the expansion of the Brazilian energy market.
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