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Energy Alert - February 2026

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February 18, 2026

NEW COES TECHNICAL PROCEDURES NO. 21 AND 22 APPROVED AND COES GLOSSARY MODIFIED

On February 14, 2026, two key resolutions were published in the Official Gazette El Peruano:

Resolution No. 19-2026-OS/CD, which approves the new Technical Procedure No. 21 “Rotating Reserve for Primary Frequency Regulation” (New PR-21
Resolution No. 21-2026-OS/CD, which approves the new Technical Procedure No. 22 “Rotating Reserve for Secondary Frequency Regulation” (New PR-22) and modifies the COES Glossary.

Below is a summary of the main changes:

New PR-21:

Effective Date: The New PR-21 will enter into force on the first calendar day of the sixth month following its publication, that is, August 1, 2026.
Scope of the New PR-21: It will apply to all generating plants connected to the National Interconnected Electric System (“SEIN”) that are obligated to provide Primary Frequency Regulation (“RPF”) services, in accordance with the Technical Standard for the Coordination of Real-Time Operation of Interconnected Systems (“NTCOTRSI”). Section 6.2.2 of the NTCOTRSI establishes that RPF is a mandatory and permanent service, not subject to compensation, that must be provided by all generating plants with a capacity greater than 10 MW. It is worth noting that in October 2025, the exemption from this obligation for generating plants using Renewable Energy Resources (RER) was eliminated.
Regulation on the Time Period: Defined as the specific interval within the day that covers a range of time, the Time Periods (and the factors in Annex 3 of the New PR-21) will be determined by COES in the reports it will issue every three years. However, the initial Time Periods will be those determined in the Second Supplementary Provision of the New PR-21. According to the considerations, the objective of establishing the charge per-Time Period is to reflect the variations of the Marginal Costs.
Obligations of Operators: The regulations governing the obligations of COES members are superseded by the regulations governing the obligations of operators of (i) Groups and Power Plants with Commercial Operation (section 7.2); (ii) Groups and Power Plants without Commercial Operation included within the scope of section 6.2.2 of the NTCOTRSI (section 7.3); and (iii) Frequency Regulation Equipment[1] (section 7.4). In addition, the regulations incorporate the obligation to store the manufacturer's source files for the meter corresponding to the frequency and power records for a minimum period of 30 days and, for operators of secondary regulation units that have provided Secondary Frequency Regulation services, to submit the signal records established in subsection d) of section 7.2 of the New PR-21.
Regulations on RegFrec Equipment and its Connection for RPF: Section 10 of the New PR-21 establishes a series of specifications regarding RegFrec Equipment, as well as its connection. On the one hand, the specifications primarily consist of requiring compliance with Technical Procedure No. 20 for the installation, expansion, and upgrading of RegFrec Equipment, as well as Technical Procedure No. 12 for modifying the equipment's technical parameters. On the other hand, regarding the connection of RegFrec Equipment, it is stipulated that such equipment may establish an "RPF Connection" [2] for each Time Period with a Group or Power Plant in Commercial Operation that is connected to the same electrical system as the RegFrec Equipment, and details the procedure for requesting and executing the connection.
Delegation of the RPF service: Section 11 of the New PR-21 improves the regulations on the delegation of the RPF service, specifying the conditions, parameters, and procedures for scheduling and executing delegations.
Modification of the methodology for calculating the non-compliance charge: As stated in the preamble, the aim is to discourage strategic non-compliance by generators. To this end, Section 14 of the New PR-21 modifies the formula for calculating the amount payable for non-compliance per Time Period, including variables such as short-term marginal cost, market interval, variable cost of the market interval, terminal power, and transition variable, among others. During the first four months of its implementation, the non-compliance charge will consider the transition variable to be equal to 0.
Incorporation of Annex 5: The “Methodology for the evaluation and rating of compliance with the RPF Service of Generation Units or Power Plants with a linked RegFrec Equipment” is added as Annex 5.

[1] Defined in the COES Glossary as any energy storage technology facility intended to provide the RPF and/or Secondary Frequency Regulation service connected to any busbar of the SEIN (National Interconnected System).

[2] Defined in the COES Glossary as the action by which the owner of a Generation or Power Plant establishes an operational relationship with a RegFrec Equipment in order to provide the RPF service.

New PR-22:

Effective Date: The New PR-22 will enter into force on September 1, 2026.
Changes to Definitions: The following definitions are added: Secondary Regulation Coverage Market (“RS”), Maximum Number of Supply Blocks, Reserve Period for Secondary Frequency Regulation (“RRSF”), Limit Price, and Minimum Reserve Required for Secondary Frequency Regulation (“RSF”). In addition, the term Offer is replaced by Offer for the Adjustment Market and Offer for the Hedging Market, and the definitions of Base Provision of the RS and Allocated Reserve are removed.
Expansion of COES Obligations: The following obligations are incorporated into COES: (i) to carry out the awarding, scheduling, and allocation of the RSF service; (ii) to carry out the process for awarding a quantity of RS through the Hedging Market mechanism; and (iii) to publish a bi-weekly preliminary report, a monthly preliminary report, and a monthly report containing the evaluation of the RSF service provision and the identification of the events that resulted in Unsupplied Reserves and Unavailable Reserves in the system.
Expansion of Obligations of RS Unit (URS) Holders: URS holders will be responsible for the income or expenses resulting from the awarding and/or allocation of said URS in the Wholesale Market and must monitor the normal operation of their URS and alert COES if any abnormal operation occurs.
Regulation on RegFrec Equipment: Section 7 of the New PR-22 establishes specifications for RSF equipment, as well as for RSF Linkage. On the one hand, it was specified that the installation, expansion, and upgrading of RSF Equipment must comply with the requirements and technical characteristics established in Technical Procedure No. 20. On the other hand, the connection of an RSF Group to a RegFrec Equipment is regulated, which will only be possible when both are connected to the same electrical system. This connection must be reported to COES by the RegFrec Equipment owner within the deadline for submitting RSF Offers for the Adjustment Market and confirmed by the owners of the RSF Groups involved. Furthermore, section 8.3 of the New PR-22 establishes that the RegFrec Equipment to be connected to an RSF Group must undergo the URS qualification process.
Mandatory renewal of a URS qualification: Section 8.2.3 of the New PR-22 stipulates that a URS qualification with COES must be renewed when the tests detailed in Annex VII are older than four years.
Determination of total RRSF: It is indicated that the RRSF magnitudes determined annually by COES must be updated monthly, and the magnitudes of the Minimum Required RRSF are regulated according to the methodology in Annex IX. Furthermore, COES is permitted to establish additional RRSF magnitudes.
Regulation of the RSF service through Adjustment and Coverage Markets: Section 10 of the New PR-22 includes the process for awarding the RSF service through the Coverage Market, and Section 11 regulates the scheduling of the RSF service through the Adjustment Market. In the latter case, RRSF scheduling is included in the event of insufficient supply.
Modification and Incorporation of Annexes: Annex VIII, “Guidelines for the Allocation of Provision for Secondary Frequency Regulation,” is replaced by the new Annex VIII, “Guidelines for the Allocation of the Coverage Market for the RSF.” In addition, Annex IX, “Methodology for Determining the Minimum Reserve Required for the RSF,” and Annex X, “Methodology for Determining the Limit Price of the Offer for the Adjustment Market and for the Coverage Market,” are added.

MODIFICATIONS TO THE COES GLOSSARY

Modification of the terms “Maximum Monthly Demand at the Generation Level,” “Transfer Bus,” “Delivery,” and “Withdrawal.”
The definitions of “Group for RSF,” “Temporarily Isolated System,” “Link for RPF,” “Link for RSF,” and “RegFrec Equipment” have been added.

For further information, please contact Verónica Sattler (vsattler@estudiorodrigo.com), Alejandro Manayalle (amanayalle@estudiorodrigo.com) and/or Milene Jayme (mjayme@estudiorodrigo.com)

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