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Paraguay: ANDE awaits authorization from Brazil to award energy sales to the country
Friday, September 20, 2024 - 11:15
Fuente: Reuters

The president of the institution, Eng. Félix Sosa, explained that negotiations with the Brazilian authorities are ongoing, and that they expect that in the next few days there will be important news regarding the approval.

The National Electricity Administration of Paraguay (ANDE) is awaiting significant progress in Brazil's authorization to sell 100 MW of the Acaray hydroelectric plant to its electricity market.

The president of the institution, Eng. Félix Sosa, explained that negotiations with the Brazilian authorities are ongoing, and that they expect that in the next few days there will be important news regarding the approval.

“We are in contact with the Brazilian Ministry of Mines and Energy, hoping that this week we will have an important breakthrough so that we can award the sale of the energy,” said Sosa. The energy is destined for the Free Contracting Environment (ACL) of the market. electric from Brazil.

Sosa added that while the companies interested in acquiring the energy already meet the technical requirements and operate in the Brazilian energy market, they must still wait for official authorization to analyze the conditions that may arise.

"These companies are authorized and comply with the standards, but we must wait for the technical conditions that may be included in the authorization," he stressed.

Regarding the deadlines, the head of ANDE clarified that, although there is optimism regarding the progress of the negotiations, it is not possible to guarantee that the authorization will be issued this week. "We are going to work in parallel with the study of the award , but we cannot guarantee a specific date yet," he concluded.

ANDE'S ENERGY SALE TO BRAZIL WOULD BE A MILESTONE, ACCORDING TO SOSA

The president of the state-owned electricity company has stated on several occasions that this sale to Brazil would mark an important milestone in the commercialization of Paraguayan energy in international markets, opening a new window of opportunity for the diversification of the country's income.

Of the seven Brazilian energy suppliers that submitted their purchase proposals to ANDE, Infinity Comercializadora de Energía was the one that offered the highest price for each MW of Acaray at US$21.03 per MWh for a period of six years.

That is to say, if ANDE awards the contract to this firm, the new business would generate an annual income of US$ 18,419,280 for the state electricity company.

The second best proposal was made by Matrix Comercializadora de Energía Eléctrica, which offered US$ 12.00 MWh, but only for 1 to 3 years. In this case, if the sale is awarded, ANDE's annual income from the sale would be only US$ 10,512,000.

It is worth mentioning that in the Free Contracting Environment, generators, importers and exporters of energy and free and special consumers are free to negotiate and establish by contract the volumes of purchase and sale of energy and their respective prices, according to the specialized platform Metron.

“Free consumers buy energy directly from generators or suppliers through bilateral contracts with freely negotiated conditions, such as prices, terms, volume, etc. Each consumer unit pays a bill for the distribution service to the local concessionaire (regulated rate) and one or more invoices for the purchase of energy (price negotiated by contract),” he specifies.

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