221 1. Introduction The global energy transition is reshaping both electricity markets and industrial value chains. Among its less-discussed consequences is a sharp rise in demand for the minerals that make decarbonization physically possible — copper for transmission and electrification, lithium for storage, nickel and cobalt for batteries, rare earths for magnets and motors. Peru is a major supplier of several of these, and that position is the starting point for this paper (IEA, 2021). The same transition that is driving mineral demand is also reshaping what is expected of mining companies themselves. ESG frameworks, investor mandates, and national climate commitments are pushing the sector to reduce emissions — even as it scales output. The tension is real: the minerals needed for a low-carbon economy must be produced under increasingly stringent environmental conditions. Energy sits at the center of this challenge. Mining is energy-intensive by nature: extraction, hauling, processing, and ventilation all require continuous, uninterrupted power. What matters in practice is not just whether energy is affordable, but whether it can be delivered without interruption and at predictable cost over the investment horizon of a major mine. International evidence is clear that as renewable penetration rises, the need for firm backup capacity — capable of covering renewable shortfalls without warning — rises with it (Igogo et al., 2020). Within this evolving landscape, Peru occupies a distinctive position. As one of the world’s leading producers of copper and other critical minerals, the country is both a beneficiary of energy transition and a key enabler of its global feasibility. Its electricity generation is predominantly renewable — led by hydropower, which provides a low-carbon and stable foundation for the system. Its domestic natural gas resources complement this base by providing the firm, dispatchable capacity that hydropower alone cannot guarantee under all operating conditions — a combination that constitutes a structural advantage for a more balanced and pragmatic transition strategy, but only if those resources are translated into reliably deliverable energy. The central question for Peru is not whether to transition, but how to do so in a way that preserves competitiveness. A purely renewable-based pathway faces constraints related to intermittency, system costs, and infrastructure readiness. A hybrid approach combining renewable expansion with reliable gas-backed generation offers a more feasible trajectory, provided the conditions for that approach are actively maintained. Energy and Mining Viability 2.1 Reliable and Cost-Competitive Energy as a Condition for Mining Viability Mining is inherently energy intensive. Core activities — extraction, hauling, processing, pumping, ventilation, and mineral transport — require large and continuous energy inputs, making energy a central determinant of operational performance. Energy typically accounts for between 15% and 40% of total operating expenditures, and in many operations, it exceeds labor
RkJQdWJsaXNoZXIy MTM0Mzk2