Solar Power Plant Project in Chaco, Paraguay

By BKM-BERKEMEYER

Project Overview

The Administración Nacional de Electricidad (ANDE), Paraguay's national electricity authority, is planning to construct a 140-megawatt solar power plant in the Chaco region. This will be the country's first large-scale solar power project and represents a significant step towards diversifying Paraguay's energy mix and reducing its reliance on hydropower.

Project Details

Project Type: Solar photovoltaic (PV) power plant
Capacity: 140 megawatts
Location: Chaco region, Paraguay
Investment: Approximately USD 1 million per megawatt
Energy Purchase Agreement: ANDE will purchase the energy produced by the plant at a reference rate to be determined by regulation.
Project Duration: 15 years

Project Objectives

Increase renewable energy generation: The project aims to increase the share of renewable energy in Paraguay's energy mix, contributing to the country's energy sustainability goals.
Meet growing energy demand: Paraguay's electricity demand is growing steadily, and the solar power plant will help to meet this demand while reducing reliance on traditional fossil fuels.
Attract private investment: The project is expected to attract private investment in Paraguay's renewable energy sector.

Project Significance

The solar power plant project is significant for several reasons:

-First large-scale solar project: It will be the first large-scale solar power plant in Paraguay, paving the way for further development of solar energy in the country.
-Diversification of energy mix: The project will help to diversify Paraguay's energy mix, reducing its dependence on hydropower and enhancing energy security.
-Renewable energy potential: Paraguay has abundant solar energy potential, and the project will harness this clean energy source to meet the country's growing energy needs.

Project Status

ANDE has announced that it will call for bids for the construction of the solar power plant in 2024. The project is expected to be completed within the next few years.

Legal Considerations

The project will be governed by Paraguay's new Law on Non-Conventional Renewable Energies (Law No. 6977/23), which promotes the development and utilization of renewable energy sources. The law establishes a framework for the procurement of renewable energy by ANDE and sets forth the terms and conditions for power purchase agreements.