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Peru: MINEM proposes new window for submission of PADs for electricity activities

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In brief

What does it mean to declare a state of emergency at the national level?

On 11 February, Ministerial Resolution No. 047-2023-MINEM/DM, which pre-publishes the “Draft Supreme Decree that establishes complementary provisions for the Detailed Environmental Plan regulated in the Regulation for Environmental Protection in Electrical Activities, approved by Supreme Decree No. 014-2019-EM” (“Draft SD“) was published.

As you will recall, the Regulation for Environmental Protection in Electrical Activities, approved by Supreme Decree No. 014-2019-EM (“Regulation“), provided that parties who hold electrical activities without an environmental certification can avail themselves of the Detailed Environmental Plan (PAD) to regularize this situation. Such parties had until 19 November 2019 to communicate their decision to make use of this exceptional regime.

Likewise, the Regulation established that the PAD had to be submitted by 19 November 2022 a deadline that was extended to 6 February 2023 due to deadline suspensions being approved in the framework of the National State of Emergency.

In depth

By means of the Draft SD, the MINEM proposes the following:

1. Open a new window to apply and submit the PAD

The owners of electrical components built before the entry into force of the Regulation on 8 July 2019, who are required to submit the PAD, must inform the DGAAE of their decision to be included, within three months from the entry into force of the regulation to be issued. In the case of municipalities or regional governments, the term will be nine months.

The PAD shall be submitted within no more than three years from the date of entry into force of the regulation to be issued. In the case of municipalities or regional governments, the term shall be five years, following the schedule contained in Annex 2.

2. Extending the deadline for the presentation of the PAD for those parties that had already applied for the PAD

Owners of electrical activities that have already applied for the PAD within the term established in the Regulation will be granted three more years on top of the term originally foreseen for the presentation of the PAD.

It is important to mention that if electrical activities have been developed without an approved or modified environmental study, the PAD applies, without prejudice, to the supervision and inspection powers of the OEFA.

Interested parties have until Friday, 24 February 2023 to submit their comments physically to Av. Las Artes Sur N° 260, San Borja, Lima, or electronically, to consultas_dgaae@minem.gob.pe.

We hope this information will be of relevance to you and your company. If you require any further information, please do not hesitate to contact us.

Click here to access the Spanish version.

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Ines Vazquez is a partner in Estudio Echecopar. Prior to joining the Firm, she was the head of Latin America Power's Legal Department for two years, during which she gained wide experience and was exposed to transactions in multiple jurisdictions. She has worked on privatization and concession procedures in the electric power sector for private clients, as well as in bidding processes of public services concessions in general. She also has a solid background in corporate law, mergers and acquisitions, financing, and has participated in several acquisition transactions and sale of companies, assets and shares participations, including mergers, spin-offs, reorganizations and other structures, both domestic and international. Additionally, Ines has contentious and non-contentious construction practice based on domestic and international arbitration, advising both private and state owned companies.

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Nicole Freire is an experienced lawyer specializing in environmental, climate change and ESG matters. With over a decade of expertise, she has provided valuable counsel to both local and international companies in various sectors such as mining, hydrocarbons, electricity, and industrial and commercial fields. Nicole is well-versed in navigating the complexities of ongoing business development, administrative sanction proceedings, carbon markets and formulating strategic plans to secure environmental permits. Nicole has been recognized by The Legal 500 in its 2023 edition for Latin America, where she was honored as a "Rising Star" in Environmental Law.

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Claudia Cruces is a lawyer with a focus on power regulation and renewable energies. She has participated in bidding process for the concession of public services, projects and power purchase agreements in the sector. Also, has advised several private companies and public entities regarding the analysis of the regulations. She has also developed practice in national and international arbitrations in power matters.
She is also experienced in mergers and acquisitions, financing, and has participated in the acquisition transactions and sale of companies, assets and shares participations, including mergers, spin-offs, reorganizations and other corporate structures in the sector.
She has advised private companies in the development and operation of generation, transmission and distribution activities. As part of the advice, she has accompanied the clients in procedures before the authorities for the granting of the permits; sanctioning procedures, tariff procedures and controversies. As well, she has experience structuring and negotiating power purchase agreements, construction agreements, operation and maintenance agreements, and transmission agreements.

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