Paraguay finally regulated its law promoting non-hydro renewable energy (Law No. 7599/2025), the framework that formally enables the private sector to generate, market and export clean energy, including solar, wind, biomass and geothermal, as well as storage systems.
This means that the regulation introduces a structural change in the Paraguayan electricity market, as private developers will be able to sell electricity directly to large consumers, through transport contracts and toll payments to the National Electricity Administration (ANDE).
Furthermore, ANDE will be able to launch international tenders to contract new renewable capacity; therefore, the decree was so eagerly awaited by the sector as it will unlock a process announced years ago: the first large-scale solar auction in the country, with a capacity of 140 MW in Chaco Central, whose call was postponed on several occasions while the regulatory framework was adjusted.
The contracts may be extended up to 30 years , under take or pay schemes, which means that if ANDE restricts dispatch without force majeure, it must compensate for the energy that the project could have delivered.
“The modernization of the energy sector is taking a decisive step. Paraguay is transforming a strategic vision into a concrete operational framework to attract investment, diversify its energy mix, and support the sustained growth of national electricity demand,” celebrated Paraguayan President Santiago Peña on social media.
The decree also includes a mechanism to reduce the perception of payment risk.
The creation of a trust administered by the Development Finance Agency (AFD) , established by the Ministry of Economy and Finance, is enabled, where ANDE will be able to fund resources to guarantee contractual obligations with private generators.
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New electricity market for private companies
The most significant change in the decree is the opening of the electricity market to private entities. It's also worth clarifying that the regulation defines Large Renewable Energy Consumers as users with a demand equal to or greater than 30 MW , a segment that could include industries with high electricity consumption interested in directly contracting for renewable energy supply.
In parallel, the decree organizes the market under four regulatory frameworks.
- The ERNC Self-Generator will be able to produce for self-consumption and inject surpluses.
- The ERNC Cogeneration Plant will combine electricity generation with other industrial energy processes.
- The renewable energy generator will be able to supply the state-owned electric company, concessionaires, or private consumers.
- While the ERNC Exporter will be able to produce exclusively for export.
A new economic scheme for energy surpluses is also established, where self-generators can offset the energy they inject into the grid through bill credits. If this positive balance persists for more than six consecutive months, ANDE will be required to pay it off.
However, in the case of surpluses exceeding 1 MW , the purchase will be subject to the operational needs of the system.
The infrastructure will remain the responsibility of the investor.
When a project requires expansions, reinforcements, or new works for connection to the system, the cost must be borne entirely by the private entity. Once completed, the facilities related to network strengthening will be transferred to ANDE at no cost to the State, while the project's own infrastructure will remain under the developer's control.
In addition, ANDE will maintain technical control of the system, approval of projects, inspection of facilities and administration of contracts.