Paraguay’s national electricity authority, the Administración Nacional de Electricidad (ANDE), is set to build a 140-megawatt solar power plant in the Chaco region. The project, the country’s first large-scale solar initiative, marks a crucial move toward diversifying Paraguay’s energy sources and reducing its dependence on hydropower.
Boosting Renewable Energy: Paraguay’s Solar Power Initiative
The Chaco solar project will boost the share of renewable energy in Paraguay’s energy mix and support national sustainability objectives. It will also help meet rising electricity demand while reducing dependence on conventional fossil fuels.
The project will operate under Paraguay’s new Law on Non-Conventional Renewable Energies (Law No. 6977/23), which promotes the development and use of renewable energy sources. This legislation outlines a framework for ANDE to procure renewable energy and specifies the terms for power purchase agreements.
15-Year Solar Project to Boost Renewable Energy Goals
Set to span 15 years, the project will contribute significantly to Paraguay’s renewable energy goals. By increasing the share of clean energy in the national grid, the solar PV plant is expected to play an instrumental role in reducing carbon emissions and promoting sustainable development in the region.
With an estimated investment of approximately USD 1 million per megawatt, the project is expected to draw considerable private investment into Paraguay’s renewable energy sector. The venture’s total projected cost of USD 140 million underscores the government’s commitment to fostering a greener economy and attracting international interest in its energy infrastructure.
Energy Purchase Agreement
To ensure the project’s viability, Paraguay’s National Electricity Administration (ANDE) will enter into an Energy Purchase Agreement (EPA) to buy the energy produced by the plant. The reference rate for this agreement will be set by upcoming regulations, establishing a fair, transparent process and a stable financial framework for the project.
As the operator of Paraguay’s national electricity grid, ANDE is responsible for all energy generation, transmission, and distribution, holding a monopoly on these services. It is an autonomous, decentralized public institution with its own legal status and assets.
Paraguay to Launch Solar Power Bid
Paraguay to Launch Solar Power Bid (Image: Collected)
Paraguay’s National Electricity Administration (ANDE) is scheduled to issue a tender for the plant’s construction later this year. The project is expected to come online within the next few years, aligning with Paraguay’s broader sustainability goals and positioning the nation as a regional leader in clean energy development.
This solar initiative reflects Paraguay’s broader commitment to energy sustainability and its goal of becoming a regional leader in clean energy. By expanding its renewable energy portfolio, the country aims to diversify its energy mix and reduce reliance on traditional power sources.
