Traditionally, hydropower has been the major source of electricity in Peru, supplying more than 80 percent of electricity requirements. However, the share of hydropower in electricity generation has declined in recent years with the development of Peru’s indigenous natural gas resources. Today, with the combination of a rapidly increasing electricity demand, increased attention to domestic energy security and the impacts of climate change, and the potential of developing projects for both domestic and export markets, hydropower development is again at the center of energy policy in Peru.