Paraguay's private sector expects the country to scale up its non-conventional renewable capacity by 2030, kicking off with the first tender for 140 MW of photovoltaic power in Loma Plata , in the Central Chaco.
“Hopefully we will reach at least 3000 MW by 2030, that would be ideal,” says Eduardo Viedma , president of the Paraguayan Renewable Energy Association (APER), during the streaming event “It had to be said and it was said ,” which is being carried out by Energía Estratégica .
Watch the full stream: https://www.youtube.com/watch?v=AqR7g0hRpnk&t=4316s
The call for bids , which has already undergone public consultation, will mark the country's entry into utility-scale photovoltaic generation under the new regulatory framework for renewables. In fact, during the public hearing, the platform set up by the state-owned company reached its maximum capacity, to the point that the system crashed.
“ANDE expected around 30 or 40 interested parties, but four hundred applied. That's the platform's maximum limit. And regarding the tender specifications, we know they aren't finalized; we expect the definitive version to be published at the end of July,” Viedma stated.
It should be noted that, according to the preliminary document, all electricity produced will be purchased exclusively by ANDE. The winning bidder must guarantee a minimum availability of 93% during the first year and 95% in subsequent periods .
The selection will be defined solely by price, and the schedule anticipates that construction and electromechanical assembly will take place between 2027 and 2028 , while the start of commercial operation is projected for 2029.
The agreement will have a maximum validity of 30 years : one and a half years for construction, 27 years for operation and maintenance, and six months for the dismantling of the facilities.
However, the project in Loma Plata does not include batteries and will be located in an area with low consumption and grid limitations.
“This tender only stipulates 100% photovoltaics, which is also striking to us, because in the Master Generation Plan most of the calls for bids were for BESS systems. But this time it's a project without batteries, which complicates the management of this type of energy considerably for ANDE in particular,” remarked the president of APER.
Furthermore, although the land is located five kilometers from the regional substation, and this proximity will facilitate immediate connection, it does not eliminate the structural limitations of the electrical system, given its location. Loma Plata is about 500 kilometers from Asunción , far from the country's main center of demand.
“The project is located in Chaco Central, an area with a very weak electrical grid, a smaller population, and less commercial development. Therefore, consumption is very low. There is a significant loss in transmission and technical parameters. From our point of view, we believe this wouldn't happen if a much more accessible location, closer to the point of consumption, had been chosen,” the interviewee emphasized during the live stream.
Despite technical concerns, business expectations far exceed ANDE's initial forecasts . This interest stems from the limited penetration of unconventional energy sources, the availability of land, and the rapid increase in domestic consumption.
“Paraguay is one of the last countries in the region to explore and generate renewable energy. And we have enormous potential, a lot of room for development, consumption, and we are in the middle of two giant economies like Argentina and Brazil, with which we are interconnected and to which we can perfectly well sell energy,” he emphasizes.
Furthermore, the urgency to incorporate new capacity is explained by the change in demand since the pandemic, driven by the growth of investments in real estate and new industrial facilities, mainly linked to big data, artificial intelligence and cryptocurrency mining .
Today, there are approximately 1000 MW of electricity consumption associated with cryptocurrency mining linked to the National Electricity Administration. This is a significant point, because if these 1000 MW of cryptocurrency demand require extended contracts with new conditions, the discussion will cease to be an isolated tender and will become a potential new phase for the Paraguayan electricity market.
“The price, which is currently at USD 69/MWh, is very competitive compared to neighboring countries. So, speaking of firm energy, 24/7 energy, ANDE is basically relying on these types of industries and generating a new consumption hub that is growing significantly,” he explains.
The problem is that infrastructure isn't growing at the same rate as demand . The pressure is already affecting transmission, distribution, and now, generation.
“The investment of approximately 300 or 400 million dollars a year in energy transmission and distribution is minimal compared to what can be done with an 18% growth in demand,” Viedma warned.
Furthermore, Paraguay owns 50% of the installed capacity in the hydroelectric plants it shares with Brazil and Argentina. Therefore, it does not control the entire capacity of these complexes.
And the hiring of large consumers reduces the margin available for the commercial and residential segments if new power plants, networks and energy efficiency tools are not incorporated.
The Loma Plata project will serve as a technical and contractual test for future tenders . Its performance will allow ANDE to measure its capacity to integrate variable generation and secure private investment over extended periods.
“Paraguay has the characteristic that once certain decisions are made at the government level, the changes are very rapid. I believe that in the short term we will be talking about a much more mature electricity market, probably with many players, which is what we want from the private sector's point of view,” concluded the president of APER.
Watch the full stream: https://www.youtube.com/watch?v=AqR7g0hRpnk&t=4316s