Since Peru started the market oriented reform of its power market in 1992, the Peruvian power industry has been vigorously developed. The market oriented trading environment promotes the investment in power industry, which further strengthens the reliability of electricity supply in Peru. The development and reform process of Peruvian power industry are introduced, and the significance of important laws in the reform process is expounded. The market oriented reform process of Peruvian power market has built a relatively stable electricity trading system, reasonable electricity pricing mechanism and transparent information disclosure system, which has the reference effector electric power system reform in China.