The $11 billion figure represents projected investment requirements for the electricity sector over 13 to 15 years, not committed capital. Officials frame the figure as necessary to prevent capacity shortfalls projected around 2030 as demand from industry, data centers and domestic consumption accelerates. Paraguay derives nearly all its electricity from hydropower, primarily the Itaipú and Yacyretá binational dams, but rising consumption threatens to exhaust the country’s surplus generating capacity within four years according to government estimates.
Vice Minister of Mines and Energy Mauricio Bejarano stated the electricity sector shows no significant opposition to the institutional restructuring and cited precedent for rapid legislative approval, noting the Ministry of Economy and Finance was established in record time when urgency warranted. Bejarano said the executive branch has refined the draft legislation and expects consensus support from private sector participants consulted through the National Energy Board process. He indicated parliamentary approval could occur in 2026 depending on legislative scheduling.
The proposed regulator would establish tariff frameworks and market access rules intended to provide legal certainty for private investors in generation projects. Paraguay has operated without an independent electricity regulator since ANDE’s creation under Law 966 more than 60 years ago. The reform would introduce a hybrid market model rather than full liberalization, with initial solar energy tenders designed to establish normative and operational frameworks replicable for future generation projects.
Separate from the $11 billion electricity projection, Paraguay holds largely undeveloped titanium, uranium and rare earth deposits. Titanium reserves alone could require over $1.5 billion in initial investment by some estimates, though these mining opportunities fall outside the power sector spending forecast. The government has convened private sector representatives, academics and technical specialists to the Energy Board to review energy availability, tariff structures and tender processes as part of the reform consultation process.
This article was curated and published as part of our South American energy market coverage.
