MercoPress. South Atlantic News Agency

Paraguay hopes to build 22 small hydroelectric plants through private investment

Paraguay also hopes to diversify its energy matrix and bolster industrial development

Paraguay plans to build 22 small hydroelectric power plants on internal rivers, with an estimated private investment of US$ 1.4 billion, explained Vice Minister of Mines and Energy Mauricio Bejarano in a radio interview after the enactment of the Small Hydroelectric Power Plants Law which grants the government free rein to bid for the construction of new dams.

“We have simplified the way to carry out these power generation processes. A lot of work was done, and this is now a law,” he stressed. The initiative simplifies the bidding process for constructing these dams, which will be managed with the electricity company ANDE.

The project aims to boost energy production, increase Treasury revenue, and create 20,000–25,000 jobs. A hydrological map guides the plan, focusing on bidding out entire river basins. The next step is to launch bids for the 22 small hydroelectric plants soon.

“There is a hydrological map with the energy potential that our country has. The idea that is going to be different this time around is that we are going to try to bid out [entire] river basins,” Bejarano further explained.

In addition, Paraguay and Argentina have initiated discussions to explore the feasibility of constructing a new gas pipeline in southern Paraguay to diversify the country's energy matrix and bolster industrial development.

The talks, involving Paraguay’s Vice-Ministry of Mines and Energy and Argentina’s ENARSA, aim to enhance energy infrastructure to support industries, job creation, and power generation.

This project complements the Bioceanic Gas Pipeline, which primarily serves Brazil but will also benefit Paraguayan Chaco communities by providing energy and fostering investment. Experts view hybrid thermal generation using natural gas and local fuels, alongside alternative energies, as a key solution to meet rising national energy demands and ensure a stable energy base.