Asunción – Paraguay's National Electricity Administration (ANDE) and the Inter-American Development Bank (IDB) held a meeting yesterday to discuss in depth the progress of strategic investments aimed at the development of Paraguay's energy sector.
During the meeting, ANDE and the IDB reviewed key projects currently underway with financial support from the IDB. The core projects are as follows:
Acaray Hydroelectric Power Plant Rehabilitation and Modernization Program (US$125 million): This aims to increase the total nominal capacity of the Acaray hydroelectric power plant by 20% (46MW), from 222MW to 268MW. Operating since 1968, the Acaray plant has two generators in each of its two powerhouse buildings. This modernization will introduce state-of-the-art operation and maintenance technologies and extend the plant's lifespan by 30 years. It is expected to increase annual power generation from 947,000 MWh to over 1,000,000 MWh, improving the availability and reliability of the national power generation system. Notably, generators 1 and 2 of Acaray 1 will be replaced, while generators 3 and 4 were previously replaced through partial retrofits.
Paraguay Sustainable Energy Investment Program (US$70 million): This program includes the construction of the 500kV Iguazu-Valenzuela transmission line and the Iguazu and Valenzuela substations. This will be a crucial infrastructure development for strengthening Paraguay's power transmission infrastructure and ensuring a stable power supply.
High-Voltage Transmission System Expansion Program - Phase 2 (US$260 million): This ambitious plan includes the following major works:Construction of the second circuit of the 500kV Margen Derecha-Villa Hayes transmission line.
Expansion of the Margen Derecha and Villa Hayes substations.
Construction of the 220kV double-circuit Guarambaré-Valenzuela transmission line and related facilities.
Construction of 220kV underground transmission lines (San Lorenzo-Villa Aurelia, Barrio Molino-Villa Aurelia).
Modernization of the Limpio static var compensator.
Expansion of ANDE's emergency fault clearing system (Eccande).
The President of ANDE, Félix Sosa, emphasized at the meeting, "These investments are essential to continuously strengthen the national power system. It is crucial to continue collaborating through strategic alliances to build a reliable, efficient, and sustainable power system that benefits all citizens."
Representing the IDB at the meeting were Marcelino Madrigal, Head of the Energy Division, and Alonso Cheverry, Representative of the Multilateral Bank, who reaffirmed the IDB's ongoing commitment to the development of Paraguay's energy sector.
This meeting between ANDE and the IDB served to reaffirm the close cooperative relationship between the two institutions in their efforts to improve Paraguay's energy infrastructure and build a sustainable energy system.
Inter-American Development Bank (IDB): An international financial institution that supports the economic and social development of Latin America and the Caribbean. It promotes the development of its member countries through loans, technical assistance, and grants to the public and private sectors.
Paraguay's Power Market Situation: Paraguay produces relatively inexpensive electricity based on its abundant hydropower resources. However, due to the aging of the transmission and distribution network and a lack of investment, there are significant power losses and some regions face difficulties in ensuring a stable supply. Therefore, the government is prioritizing the modernization and expansion of power infrastructure.
Importance of Sustainable Energy: Paraguay is committed to building a sustainable energy system to address climate change and strengthen energy security. In addition to hydropower, there is a growing interest and investment in the development of renewable energy sources such as solar and wind power.
It is expected that this collaboration between ANDE and the IDB will further modernize and efficiently improve Paraguay's power system. This will have a positive impact on Paraguay's economic growth and the quality of life of its citizens.
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