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Paraguay: National Economic Team will make the final decision to sell energy to Brazil
Thursday, November 7, 2024 - 11:15
Fuente: Gentileza

ANDE participated in meetings with the National Electric System Operator (ONS) of Brazil and the Chamber of Electric Energy Marketing (CCEE) to fine-tune the details of the agreement to operate the sale of Paraguayan energy to the Brazilian free market.

The final decision on the sale of Paraguayan energy to Brazil will depend on Paraguay's National Economic Team (EEN).

The Director of Planning and Study of ANDE, Francisco Escudero, explained that ANDE will only present to the EEN the actions and proposals of Brazil, as well as the implications of a possible sale, but that the decision to sell the energy from the Acaray Central to Brazilian agents will depend on what the aforementioned team defines.

Meanwhile, ANDE authorities participated in meetings with technicians from the National Electric System Operator (ONS) of Brazil and the Chamber of Electric Energy Marketing (CCEE), among other institutions of the Brazilian electric sector, to fine-tune the details of the agreement to operate the sale of Paraguayan energy to the free market of the neighboring country.

Engineer Escudero commented that he could not attend the meeting due to other commitments with the Ministry of Economy and Finance. Regarding the text of the final ordinance, he stated that it was in accordance with the original draft and met the institution's expectations. "They did not introduce anything different from what was published (initially) and from what we expected. Except that they did eliminate the fact that the energy comes from the Acaray hydroelectric plant. Therefore, it opens the possibility for Paraguayan energy, excluding Itaipú, obviously," he explained.

This decision leaves Paraguay with the flexibility to use other hydroelectric plants and other resources in future exports to the Brazilian market. In addition, the ordinance expanded the energy import limit to 120 MW, an additional 20 MW to the 100 MW initially planned.

For Paraguay, this means the possibility of increasing the volume available for sale on the free market in Brazil, which could translate into higher economic income. “The increase to 120 MW is beneficial for ANDE and the country, since it increases the volume that we can market,” said Escudero.

If the initial sale of 100 MW is completed, Paraguay could launch a new tender for the additional 20 MW. On the other hand, despite the progress in the procedures for the export of Paraguayan energy to the free market of the Brazilian electricity sector, a second ordinance requested by Paraguay to enable the sale of energy in the short-term market of the neighboring country is still pending, and is still under review in Brazil. The lack of response in this regard keeps ANDE in suspense.

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