By December 20, 2025, distribution capacity improved with a net increase of 481,000 kVA in installed transformer power, surpassing the initial target of 425,000 kVA. Over 817 kilometers of unprotected conductors were replaced with insulated lines, targeting service continuity. Maintenance exceeded goals with servicing of 357 medium-voltage feeders. Transmission upgrades completed include key substations Valenzuela 500 kV, Alto Paraná 220/66/23 kV, and María Auxiliadora 220/23 kV. Ongoing works encompass the 500 kV Yguazú–Valenzuela line and 220 kV Villa Hayes–Villa Real–Pozo Colorado–Loma Plata.
For 2026, ANDE plans $186 million in new substation and transmission line projects in rapidly growing urban and productive regions such as Central and interior departments like Canindeyú, Alto Paraná, and Ñeembucú. These projects will be executed under leasing schemes with approximately 18-month timelines. ANDE also faces a reduced infrastructure budget of $511 million in 2026, 16.2% below 2025, of which $340 million is earmarked for improvement and distribution, creating a funding deficit against the $500 million annual need.
The utility continues confronting significant energy losses, reported at nearly 7 million MWh in 2024, equating to $341 million in economic impact. Clandestine consumption, particularly from unauthorized cryptomining operations, remains a critical challenge. Despite current tariffs remaining stable for most consumers through 2025, updates targeting high-demand users like cryptomining sectors are under consideration to improve cost recovery without impacting residential users.
ANDE projects peak consumption of available installed capacity between 2030 and 2033, emphasizing the shift toward private sector participation in generation and a more diversified energy matrix including solar projects. Financial sustainability is supported by growing dollar-denominated income streams from large users, notably the cryptomining industry, which now accounts for significant foreign currency revenue. However, rising debt repayments tied to past loans strain operational budgets, mandating strategic debt restructuring in collaboration with the Ministry of Finance.
Overall, ANDE’s investment strategy aims to align infrastructure expansion with accelerating demand growth, though budget constraints and administrative delays have postponed initial timelines for critical projects, underscoring ongoing sector challenges in Paraguay’s power market.
This article was curated and published as part of our South American energy market coverage.
