Paraguay is poised for a significant leap in its energy transition as the Administración Nacional de Electricidad (ANDE), the national electricity authority, advances plans for the country’s first large-scale solar power project. The initiative involves a 140-megawatt photovoltaic plant located in the Chaco Central region, representing a landmark effort to diversify Paraguay’s energy matrix away from its heavy dependence on hydropower.
Pioneering Solar Energy: Paraguay’s ANDE Builds 140MW Solar Power Plant in Chaco
Contrary to a project already under construction, ANDE is preparing to launch a public tender for the development of the 140MW facility. According to the Vice Minister of Mines and Energy, Mauricio Bejarano, the auction was scheduled to launch before the middle of this year. This strategic move to attract private investment is being carried out under Paraguay’s Law on Non-Conventional Renewable Energies (Law No. 6977/2022), which provides the legal framework for integrating new sources of renewable energy into the national grid.
Investment and Economic Framework for the 140MW Plant
The project is expected to attract significant private investment, with industry estimates placing the cost at approximately USD 1 million per megawatt, bringing the total projected investment to around USD 140 million. To guarantee the project’s financial stability, the National Electricity Administration (ANDE) will establish an Energy Purchase Agreement (EPA) to buy all the power generated. As the state-owned monopoly operator for electricity generation, transmission, and distribution, ANDE’s commitment provides a secure foundation for investors.
A Strategic Move Towards a Sustainable Future with Paraguay’s Solar Plant
With an operational timeline spanning 15 years, the Chaco solar PV plant is a cornerstone of Paraguay’s long-term sustainability objectives. By introducing a significant portion of clean energy into its supply, the nation aims to reduce carbon emissions, bolster energy security by diversifying its sources, and position itself as a forward-thinking leader in the regional transition to green energy. The successful implementation of this project will be instrumental in meeting rising electricity demand with sustainable and locally produced power.
Sources
- JICA Report on Paraguayan Energy Sector
- Paraguay eyes 800 MW expansion as government opens power …
- Paraguay’s plan to become a South America export and production …
- Diagnosis of Water in the Americas
