May 25, 2025

Chaco Solar Power Plant: 140MW Project Promises Extraordinary Impact

Paraguay is making significant progress in renewable energy with the construction of a 140-megawatt (MW) solar power plant in the Chaco region. Spearheaded by the National Electricity Administration (ANDE), this project aims to diversify the country’s energy mix, which currently relies heavily on hydroelectric power. For more details, you can visit Paraguay’s ANDE Builds 140MW Solar Power Plant in Chaco – PVKnowhow.

Chaco Solar Power Plant Marks Paraguay’s First Large-Scale Solar Project

The project marks a groundbreaking milestone as Paraguay’s first large-scale solar power initiative. Situated in Mariscal Estigarribia, approximately 530 kilometers from Asunción, the plant will span an area of 250 hectares. It will feature 30 inverters and two transformers, with the generated power being transmitted through a 66-kilovolt (kV) line.

The construction of the plant is expected to take 18 months, with completion anticipated by the end of 2025. This solar power plant is a key component of Paraguay’s energy transition strategy, aimed at increasing the share of renewable energy in the national grid. For a comprehensive overview of Paraguay’s solar production, visit Paraguay Solar Production Report || PVknowhow.

Investment and Economic Impact of the Chaco Solar Power Plant

The project represents a substantial investment in Paraguay’s renewable energy sector. The total cost is estimated at $160 million, with funding provided by the Inter-American Development Bank (IDB), the International Bank for Reconstruction and Development (IBRD), and the European Investment Bank (EIB).

The solar power plant is expected to generate 290 gigawatt-hours (GWh) of electricity annually, reducing the country’s reliance on fossil fuels and contributing to a reduction in carbon dioxide emissions by approximately 120,000 tons per year.

Beyond environmental benefits, the project is expected to positively impact the local economy. The construction phase is projected to create around 400 direct jobs, while the operational phase will require a workforce of approximately 20 employees. This initiative is also expected to stimulate further investment in renewable energy in Paraguay, attracting both domestic and international investors.

Chaco Solar Power Plant and Paraguay’s Energy Transition

Paraguay’s energy transition is driven by the need to diversify its energy mix and reduce its dependence on hydroelectric power. Currently, the country generates nearly all of its electricity from hydropower, primarily from the Itaipu and Yacyretá dams. However, the country’s growing energy demand — coupled with the effects of climate change — has underscored the need for a more diversified and resilient energy system.

The development of solar power in Paraguay is viewed as a crucial step in achieving this diversification. The country’s geographic location and climate conditions make it well-suited for solar energy generation, with high levels of solar radiation throughout the year.

The 140MW solar power plant in the Chaco region is the first of several planned solar projects in Paraguay. The government has set an ambitious target to increase the share of renewable energy — including solar and wind — in the national energy mix to 20% by 2030.

Future Renewable Energy Prospects Fueled by Chaco Solar Power Plant

The successful completion of the solar power plant in Chaco is anticipated to pave the way for further renewable energy projects in Paraguay. The country has significant untapped potential for both solar and wind energy, which could help meet its growing energy demand while reducing its carbon footprint.

Paraguay is also exploring the development of wind energy projects, identifying several potential sites for wind farms, primarily in the eastern and central regions. These projects are expected to complement the existing hydropower infrastructure, providing a more balanced and sustainable energy mix.

Paraguay’s commitment to renewable energy is further demonstrated by its participation in international initiatives aimed at promoting clean energy development. The country is a member of the International Renewable Energy Agency (IRENA) and has signed the Paris Agreement, committing to reducing greenhouse gas emissions and promoting sustainable development.

The 140MW solar power plant in Chaco represents a major advancement in Paraguay’s energy transition. The project is expected to significantly impact the country’s energy sector by reducing its reliance on fossil fuels and contributing to a more sustainable and diversified energy mix.


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