The British youngster failed to produce the form he has shown in previous rounds and Peliwo was on hand to take advantage of a below par-performance.
Both players offered break points to their opponents in the first set but it was Peliwo who was able to make the decisive breakthrough.
Ward-Hibbert tested Peliwo's serve late on in the set but the Canadian was able to hold on to win the opener.
Peliwo looked far more accomplished in the second set, dominating rallies and quickly winning his service games.
Ward-Hibbert failed to replicate his opponent's improvement and he was broken twice more to hand Peliwo a semi-final place.