Paraguay is planning a significant expansion of its electrical system to keep pace with growing demand , which in recent years has far exceeded historical levels and necessitates the addition of new generation capacity in the short term. According to official estimates, the country will need up to 800 MW of additional capacity to supply both current consumption increases and the arrival of new industries. " The private sector will be the major player going forward in Paraguay ," stated the Vice Minister of Mines and Energy, Mauricio Bejarano , during the Future Energy Summit (FES) in Argentina, while explaining the government's strategy to mobilize capital for new electricity generation projects. The official detailed that the National Electricity Administration's (ANDE) Master Plan anticipates an annual expansion of between 400 and 500 MW , but cautioned that this figure could increase given the growth of industry and large consumers. "There is a need for an additional 200 to 300 MW that we will have to implement to serve the large industries that are coming," the Vice Minister noted, clarifying that this does not include convergent industries. The planned measures include power purchase agreements (PPAs) of up to 30 years, the establishment of consortia, and the transfer of projects —mechanisms designed to facilitate the financing of new power plants. One of the milestones of this strategy will be the country's first large-scale solar tender , which envisions the construction of a 140 MW photovoltaic park in Chaco Central . This tender will be launched once the regulations for the renewable energy promotion legislation are finalized. "We are obligated to launch the tender before mid-year," stated the Deputy Minister, who explained that the project could become operational between 18 months and two years after being awarded. “At what prices can these projects be installed? Between USD 50 and 60 per MWh, so I understand there is significant profitability and that it's a break-even point for entering the market,” Bejarano added. This need for tenders and new projects is due to the sharp increase in demand, which fluctuated between 18% in 2024 and 12.5% in 2025, compared to the traditional 7 percentage points, thus narrowing the range of available installed capacity. In this context, the government is promoting a paradigm shift in the national electricity system, historically concentrated around ANDE (National Electricity Administration), seeking to attract private investment through new regulatory instruments, including the recent Renewable Energy Promotion Law (Law No. 6977/2022), which enables different participation schemes for developers and financiers. In parallel, the government opened new avenues for electricity sales, allowing direct contracts with large consumers exceeding 30 MW , as well as the development of self-consumption projects. The new system also promotes distributed generation in installations smaller than 1 MW , where ANDE (the National Electricity Administration) is obligated to purchase the energy generated by self-producers.
This segment could expand, especially in the metropolitan area.
Regional Integration and New Electricity Markets: Paraguay's energy expansion also envisions new export opportunities to regional markets , leveraging existing electrical interconnection infrastructure. The country already has energy links with Brazil and Argentina , and is exploring the possibility of extending its reach to Bolivia through future interconnections. " We have the potential to export energy, given the opening of a new market like Bolivia and the possibility of interconnection in the near future ," explains Bejarano. Furthermore, the development of regional infrastructure such as the Bioceanic Route could spur new industrial activity in the Paraguayan Chaco, increasing energy demand in the region and creating opportunities for renewable and firm generation projects to support the growth of the electrical system.