Electric vehicle regulation and law in Peru

Peru currently has no specific legislation on EVs, incentive schemes promoting their use and the associated infrastructure required for charging EVs. However, Peruvian authorities are seeking to encourage the entry of EVs through specific legislation and other measures to join the global trend of promoting the use of this type of vehicles.

1. What EVs have been deployed in your jurisdiction to date?

There is no official information about all the EVs models that are currently in circulation in Peru. According to the Ministry of Transport and Communications (MTC), most EVs imported and currently circulating in the country are charged autonomously, not relying on any charging stations or facilities.

It is known that one of the first EVs in circulation in Peru was the Mitsubishi I-Miev, and that the Municipality of Miraflores (in Lima Province) has a fleet of electric motorcycles for patrolling the district.

2. Is there any specific legislation for/regulation of EVs in your jurisdiction?

There is no specific legislation or regulation of EVs in Peru. However, there is a Bill Project (2182/2017-CR) in the National Congress for declaring the national interest and public necessity of the promotion of the use of hybrid and EVs, as well as the required charging facilities for their operation.

The project was filed for review and approval in November 2017 and has been approved by the Energy and Mines Committee. It is currently awaiting discussion in a plenary meeting of the Congress.

3. What measures promote EVs in your jurisdiction?

Despite not having EV-specific legislation or regulation, at the beginning of May 2018 the government issued tax measures that included modifying the Excise Tax. The latest modification reduced the 10% excise tax applicable to EVs to 0%, which will certainly promote the commercialisation of EVs in the country.

Local media has reported that the Ministry of Energy and Mines (MINEM), the MTC and the Ministry of Economy and Finance (MEF) are working together on a subsidy to encourage the use of EVs through the issuance of bonds. MINEM is said to be working on regulations related to EVs, the installation of charging stations, tariffs, and other services related to EVs.

4. Who are the main entities (e.g. developers, government, System Operator) and what are their roles in the deployment of EVs in your jurisdiction?

  • MTC – the governing body for national transport and land traffic. It issues regulations that allow the circulation of vehicles, which are required for the development of transport in the country.
  • MINEM – in charge of designing, establishing and supervising national and sectoral policies on energy matters, and is responsible for promoting the efficient use of energy.
  • MEF – in charge of planning, directing and controlling matters related to fiscal policy and the financing of government policies. MEF could establish a promotion scheme to encourage EV use.
  • The Ministry of the Environment (MINAM) – in charge of formulating, planning, directing, coordinating, executing, supervising and evaluating the National Environmental Policy.
  • The Organism for Investment Control in Energy and Mining (OSINERMIN) – in charge of regulating and supervising legal compliance by companies in the electricity, hydrocarbon and mining sectors. OSINERMIN will focus on the regulations that will be issued for adapting the power sector to this new market.
  • The National Mines, Petroleum and Energy Association (SNMPE) – a key representative business guild. Its main objective is promoting the efficient development of mining, hydrocarbon and electric activities. SNMPE is an important actor in promoting the use of EVs because it is part of civil society and participates actively in the issuance of regulations.
  • The Association of Service Stations of Peru (AGESP) – a private non-profit association that brings together merchants of all kinds of automotive fuels, pump owners, service stations and gas stations. AGESP to promotes their interests and development and represents them before government authorities and other social bodies. AGESP will provide input during the development of the legal framework governing EV charging stations.

5. What are the main challenges to further deployment of EVs in your jurisdiction? How have EV developers sought to overcome these challenges to date?

Some of the most important challenges include:

  • Having a legal framework for EVs, including regulations covering charging stations and their interaction with the power national grid.
  • The absence of a uniform procedure for certifying and approving vehicles, which will help in setting standards for importing and commercialising EVs.
  • The high price of EVs compared to conventional internal combustion engine vehicles.
  • The relatively limited range of batteries.

To date, no specific measures have been taken to overcome these difficulties. However, private sector players have shown their interest in making investments in EV infrastructure, as well as the development of new and better regulations.

Augusto Astorga