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. This project will be the country's inaugural large-scale solar power initiative and marks a crucial move towards diversifying its energy sources and decreasing its dependence on hydropower.
Boosting Renewable Energy: Paraguay's Solar Power Initiative
The project aims to boost the proportion of renewable energy in Paraguay's energy mix, supporting the country's sustainability objectives. Addressing the rising electricity demand, the solar power plant will help meet this need while decreasing dependence on conventional fossil fuels.
The project will operate under Paraguay's new Law on Non-Conventional Renewable Energies (Law No. 6977/23) which encourages the development and use of renewable energy sources. This law outlines a framework for the procurement of renewable energy by ANDE and specifies the terms and conditions for power purchase agreements.
15-Year Solar Project to Boost Renewable Energy Goals
The project is set to span 15 years contributing 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 a crucial role in reducing carbon emissions and promoting sustainable development in the region.
This project, with an estimated investment of approximately USD 1 million per megawatt, is expected to draw considerable private investment into Paraguay’s renewable energy sector. With a total projected cost of USD 140 million, this venture underscores the government’s commitment to fostering a greener economy and attracting international interest in its energy infrastructure.
Energy Purchase Agreement
In a strategic move 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 determined by upcoming regulations, ensuring a fair and transparent process and providing a stable financial framework for the project's operations.
The National Electricity Administration (ANDE) is the operator of Paraguay's national electricity grid. They are responsible for the generation, transmission and distribution of energy in Paraguay and have a monopoly on these services. ANDE is an autonomous and decentralized public administration institution with unlimited duration possessing legal status and its own assets.
Paraguay to Launch Solar Power Bid
Paraguay to Launch Solar Power Bid (Image: Collected)
Paraguay’s National Electricity Administration (ANDE) is set to issue a tender for the construction of a large-scale solar power plant later this year. The project is expected to come online within the next few years, marking a major step forward in the country’s renewable energy ambitions.
The solar initiative aligns with Paraguay’s broader goal of energy sustainability and positions the nation as a regional leader in clean energy development. By expanding its renewable energy portfolio, Paraguay aims to diversify its energy mix and reduce reliance on traditional power sources.