Paraguay’s ANDE launches first-ever private sector solar tender for 140 MW in market liberalization move

The Administración Nacional de Electricidad (ANDE) is structuring its inaugural tender to purchase electricity from private sector generators, marking a historic departure from the state’s traditional monopoly on power supply. The solicitation targets 140 megawatts of solar capacity requiring investment estimated near USD 100 million, with a planned facility in Loma Plata serving as the anchor project. This procurement represents Paraguay’s first formal mechanism for independent power producers to supply the national grid under competitive terms.

The tender signals Paraguay’s recognition that its hydroelectric-dominated matrix requires diversification as electricity demand accelerates. While the country generates abundant power from binational dams including Itaipu and Yacyretá, the move to incorporate private solar generation reflects both supply security considerations and alignment with regional energy transition trends. The 140 MW capacity, though modest compared to Paraguay’s total installed base, establishes procurement infrastructure that could facilitate larger-scale private participation.

ANDE’s decision to structure this as a competitive tender rather than direct negotiation indicates intent to establish transparent market pricing for renewable energy. The utility reportedly received a separate proposal in July from Atome PLC for fertilizer plant power supply at USD 35-37 per megawatt-hour for the initial decade, suggesting price benchmarks are emerging for long-term contracts. How the solar tender pricing compares will indicate whether Paraguay’s regulatory framework can attract international project capital at competitive rates.

The Loma Plata location positions the primary facility in Boquerón Department’s Mennonite colony region, an area with strong solar irradiation profiles but limited current generation assets. Project execution will test Paraguay’s ability to connect private renewable capacity in areas distant from major load centers, requiring transmission coordination beyond simple power purchase agreements. The regulatory precedent matters across South America, where several markets maintain varying degrees of state utility dominance. Peru simultaneously positions itself as a regional industry connection point with October’s PECIER-FISE expo attracting over 100 electricity sector companies from 10 countries, reflecting competitive pressure for investment flows.

The tender’s structure and resulting contract terms will determine whether Paraguay successfully transitions from exclusive state generation to a hybrid model accommodating private renewable developers while maintaining ANDE’s grid management role.