Under a leasing operational model, Ande has launched four international tenders totaling $186 million to accelerate construction and integration of substations in metropolitan, eastern, and southern systems. Projects include Zárate Isla, Autódromo, and Barcequillo substations in the Metro area, and Nueva Esperanza, Mbaracayú, Ype Jhú, and Villa Oliva in eastern and southern departments. A forecasted tender will soon initiate work on a second 500 kV line from Itaipú Binacional to Villa Hayes, with an expected investment near $180 million, plus the development of Carmelo Peralta and Colonia Independencia substations.
The interventions respond to a 30% surge in electricity consumption over two years, an unprecedented rate regionally, demanding accelerated expansion and modernization to close longstanding infrastructure gaps dating back to underinvestment before 2008. An April 2024 blackout triggered by a conductor failure at Yguazú highlighted the need for increased system redundancy, as protection mechanisms led to cascading outages affecting supply from Itaipú and Yacyretá. Ande’s leadership emphasizes that ongoing investments averaging $350 million annually are critical to satisfy peak demand and minimize supply disruptions. The leasing financing approach facilitates private sector involvement, enabling faster procurement and access to modern technology essential for the Transmission Master Plan 2024-2032. Nonetheless, some originally scheduled 2025 projects have experienced delays, shifting their implementation timeline to 2026, reflecting administrative and financial challenges. Coordination with government authorities and industry representatives continues through technical working groups aiming to optimize sector policies and regulations supporting Paraguay’s renewable-based electric system resilience and industrialization goals.
This article was curated and published as part of our South American energy market coverage.
