The proposed ordinance for Brazilian agents to buy electricity from Paraguay was previously published for public consultation, a phase in which institutions had a period of ten days to present their comments and observations.
Within the framework of the IX Energy Week of the Latin American Energy Organization (Olade), which is taking place at the Central Bank of Paraguay (BCP), Thiago Barral, National Secretary of Energy Transition and Planning of the Ministry of Mines and Energy of Brazil (MME), participated yesterday in the meeting of Energy Ministers.
There, when asked by local media ABC Color about the status of the MME's authorization procedures for Brazilian agents to buy Paraguayan energy, he replied that the minister of that portfolio, Alexandre Silveira, will communicate and explain what those conditions are.
However, he clarified that there is no specific deadline for its completion, but he guaranteed that the issue is considered
priority on the minister's agenda.
The proposed ordinance for Brazilian agents to buy electricity from Paraguay was previously published for public consultation, a phase in which institutions had a period of ten days to present their comments and observations.
Once the responses were received, the MME continued with the analysis of the draft regulations, although the final text of the permits has not yet been presented.
BRAZIL IS INTERESTED IN INTEGRATION
“We have worked very hard to conclude this as quickly as possible. The minister is personally dedicated to this issue, and so am I. So we hope that we will then have the final decision and the announcement of the final rules,” he said.
He added that although Brazil has an abundance of energy today, integration is also a valuable asset. “So we see integration with our neighbors in a broad sense as an asset, as an opportunity for both countries, for all countries,” he said.
He also stressed that the neighbouring country has a large interconnected territory, and that this is what allows for the balance of hydroelectric, wind, solar and thermoelectric energy.
"So even in times of drought, times of energy surplus, this is an issue that has advanced with Argentina, with Uruguay, with Bolivia and, why not, with Paraguay?" he said.
For his part, the president of the National Electricity Administration (ANDE), Eng. Félix Sosa, confirmed that during these days when Paraguay is hosting the IX Energy Week, technicians from his institution and the MME of Brazil took advantage of the opportunity to meet. “We are in the final adjustments,” he said.
EXPECTATIONS IN PARAGUAY AND REGIONAL CONTEXT
While Brazil is moving forward with the procedures, Paraguay hopes that the process will be concluded soon, as the country seeks to award energy sales in a market where the Brazilian offer, although not very attractive in terms of amounts, would represent gaining experience for the entry of the electric sector.
It should be noted that ANDE opened Brazilian bids in September, but has still not finalized this sale due to the lack of Brazilian permits.
Of the seven Brazilian energy trading companies, Infinity Comercializadora de Energía Ltda. was the one that presented the highest price for the energy produced at the Acaray Power Plant: US$ 21.03 per MWh for a period of six years. The lowest was US$ 7.73 MWh, offered by Engelhart CTP (Brasil) SA – BTG Pactual Commodities, for three years.
Currently, the cost of generation of the national hydroelectric plant is US$ 9.02 MWh, confirmed the president of ANDE, Eng. Félix Sosa.
Likewise, the top authorities of both Brazil and Paraguay are in the process of reviewing Annex C of the Itaipú Treaty, another central point in the energy relationship between the two countries. Asked about this, Barral declined to answer, stating that he is not a spokesperson on this issue.
