Thesis: "Improvement of the economic support system in Peru on power generation: renewable energy wind" By Maria Angelica Rondon

ABSTRACT This research was conducted in order to raise the awareness of humanity on the preservation and conservation of the environmental system (HS), since the planet as a whole is suffering from devastating natural disasters and catastrophes such as hurricanes, floods, landslides land, drought, volcanic eruptions and progressive reduction of glaciers, causing epidemics, infectious diseases, losses in crop yields and livestock due to disease and pests, and reduced availability of water for human consumption, agriculture, livestock and industrial and hydroelectric power, causing the degradation of SA and threatening the existence and health of living beings. In Peru, in the last 25 years, is losing 22% of glacier surface, causing water shortages gradually throughout its coast. There is also an increase in the intensity of catastrophic landslides in the mountains and Peru Ceja de Selva, moreover, are producing an increase of droughts in the south, such as Arequipa, Moquegua, Tacna and Ayacucho, creating dire consequences loss of life, and other living things, and hurting mainly the agricultural and livestock production. That is due to variations in climate such as increased average surface temperature, precipitation and sea level rise, known as climate change (CC) anthropogenic, one of the most serious environmental problems, because it is a phenomenon that affects everyone. The Intergovernmental Panel on Climate Change (IPCC for its initials in English Intergovernmental Panel on Climate Change), the highest scientific body that studies the aforementioned theme (created in the framework of the World Meteorological Organization and the United Nations Conference on Environment) , has established that the said CC is caused by the incessant and inappropriate human activities, which we

use fossil fuels for power, transportation, and other industries, which contribute negatively to increased concentrations of gases Greenhouse Gas (GHG) emissions in the atmosphere. Consequently, they are, especially the industrialized countries led by a utilitarian and consumerist desire to achieve higher profits opt-mercantilist, often with the consent of the developing countries, not realizing the serious damage and irreparable environmental damage caused to mankind. It is an indisputable fact that greenhouse gases are causing serious and irreversible environmental damage to the system. In this context, both the industrialized and the developing countries, are responsible for multilateral efforts, taking the necessary decisions to reduce CO2 emissions in an equitable, fair and timely manner, produced by electricity generation activities, because, this is the main source of that which causes so much damage to SA. Therefore, the use of renewable energy resources-RER-as: i) wind energy; ii) solar iii) hydraulic iv) geothermal; v) biomass, and, vi) tidal, and that for the purposes of this research will focus exclusively on the wind, as the primary means that scientists have pointed out, in order to reduce those emissions, and at the same time continue to supply power to the growing population, meeting the strong demands and needs it, and be able to respond to the search of a better quality of life for humans and others. However, initially, wind energy policies requires strong financial support to compete in the electricity market compared to fossil fuels, given that the investment cost to produce electricity from the latter is cheaper, in contrast, with wind whose installation and operating costs initially are more expensive, perhaps because their technology is new, which is compounded by the limited scientific knowledge - technological development in developing countries, such as Peru, on the application of new electric generation alternatives. In this scenario, humans have been taking hard the great task of preserving the SA, therefore, since 1970, the Club of Rome (Swiss-based organization of scientists, economists and politicians across the global village) , commissioned the Massachusetts Institute of Technology (MIT, for its initials in English Massachusetts Institute of

Technology), conduct an investigation in relation to population growth, economic growth and ecological footprint of the population on the planet in the next 100 years, the culminating in 1972 with the publication of the report, "Limits to Growth," concluding that the environmental system limits the economic development and population, as the cultivated land is finite and nonrenewable natural resources are exhaustible, therefore, but support the development of renewable energy sources, the SA will collapse and the whole planet. That same year, 1972, in the framework of the Conference of the United Nations Organization (UN) on the Human Environment held in Stockholm, Sweden from 5 to June 16, was signed the "Stockholm Declaration" by all Member States of the organization, marking a milestone as the first environmental instrument of international law, which states that governments have a responsibility to preserve and conserve the SA, for the benefit of present and future generations. Since that time, these countries members (192 countries) have adopted various multilateral treaties in order, to stop the harmful effects of human activity on the SA, such as: i) The "United Nations Framework Convention on Climate Change "signed in the city of New York, United States of America, May 9, 1992, ii) the" Convention on Biological Diversity ", in Brazil, on 5 June the same year, 1992, and iii) the "Kyoto Protocol" in Japan on December 11, 1997. They also adopted several statements such as: i) The "Rio Declaration", in Brazil, in June 1992 ii) The "Millennium Declaration", in New York at the UN headquarters in September 2000; iii) The "Johannesburg Declaration" in South Africa in September 2002.Therefore, based on the those international instruments and standards adopted in this framework has given rise to environmental law, which has assumed the scale of the problem, and now, all countries try to regulate the global village a regulatory framework appropriate to encourage the use of wind renewable energy, raising the need to implement economic support systems such as premium or green certificates, and thus encourage private investment in electricity generation from that, for the purpose of provide stability and legal security to investors by ensuring the profitability of the project and ensuring sustainable growth of that action.

Consequently, this research on "Improvement of the economic support system in Peru on power generation: renewable energy wind", part by analyzing the pioneering and successful experiences conducted in the countries of the European Union (EU), particularly in Spain, also has interviewed specialized agents who contributed to this study, contributing and sharing their knowledge of scientific, economic and institutional systems of those, and that within these, the "premium system" regulated in Peru, motivated us to study the implementation of that, with the objective of identifying barriers and inconsistencies that the current regulation to promote Peruvian has mentioned energy, which does not provide certainty and legal security to investors. This thesis is structured in four chapters. The first: "Environmental System," discusses the conceptual framework of SA and the relationship of humans with that system. The second: "Change of Fossil Energy Matrix to the use of Renewable Energy", outlines the reasons why both the industrialized and the developing need to make the above change, based on: i) to combat anthropogenic climate change ii ) Search of developing a sustainable economy, and iii) Finding the energy supply security. In the third chapter, "Renewable Energy Resources and Support Systems," describes the available renewable sources on the planet to generate electricity, making a comparison between them, concluding that the alternative wind is physically, economically and environmentally viable ; also analyzed the economic support systems currently applied in the world, to stimulate the private investment mentioned, stipulating that the "premium system" is the most efficient, safe and reliable to achieve that. In the fourth chapter, "Comparative Law Prima System for wind power generation," analyzes what has been acting in the European Union within the European Law and Integration, and within that, under Spanish law, the that has adopted the system of premium with very good results. In the fifth chapter, "Peru: Prima System Analysis for generation of electricity from renewable wind energy" first presents the existing environmental regulations in the Peruvian legal system, and second, we develop the reasons why Peru should continue to invest in wind power, thirdly, we analyze the regulated system to promote wind power generation. Ending on a legislative proposal, since the provisions in the Renewable

Energy Act are inconsistent, since it combines two systems, the premium and the bidding, which are totally and radically different. Conclusion to what was said, that based on successful experience developed in Spain, Germany, France and Denmark, we implement the "premium system" since, provides certainty and legal security that is necessary to give generating agents wind power. On the other hand, offer the role to be fulfilled by Peru as a member of the Andean Community, the dissemination and promotion of the RER, especially as experienced in wind energy. Consequently, in this thesis we look forward to, encourage other scholars to research on these topics and other related, and, to raise awareness human beings from all walks of socioeconomic (students, housewives, businessmen, workers, political leaders and religious, etc.). not only the country but throughout Latin America and the Caribbean to the understanding of the climate change phenomenon, which has been suffering humanity, can contribute their daily actions to combat it, as is also our responsibility to care for the SA, the legislators to take a thorough knowledge of the importance of promoting the use of renewable energy resources, promoting the proposed modification to the renewable Energy Act and its regulations, taking into account the valuable experience obtained by the human being in other places, and public officials to allocate the necessary financial and institutional resources to seriously and effectively promote renewable energy. Therefore, only time will determine whether human beings have been wise and thoughtful acting responsibly.