As of 2024, Paraguay has a relatively modest solar energy capacity, with approximately 1.6 megawatts (MW) of installed solar power.⁵

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Total projected solar panel production capacity: 1.6 GW.

• According to the last Generation Master Plan (2021 – 2040) from ANDE, electricity consumption is expected to rise by 5.8% annually until 2030 and by 4.4% to 5.8% per year from 2031 to 2040, depending on the scenario. To meet this demand, an additional 2.15 GW of generation capacity is planned, with the majority coming from solar photovoltaic and battery storage.

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Exact prices are not available for each source as due to maximum production by hydro. However, following information is available;

• Hydropower makes up the majority of the country’s power generation, accounting for approximately 99.5% of the installed capacity.
• The average electricity price in Paraguay has dropped from 59.6 USD/MWh in 2021 to 38.44 USD/MWh in 2022.

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• The average daily availability of electricity from the national grid in Paraguay is not explicitly stated.
• However, given the frequent power outages and reported issues, it is clear that the availability is inconsistent.

Not available due to very low installed capacity of electricity production by solar PV.

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Installed Solar Farms

As of now, Paraguay has 2 installed solar projects: the Filadelfia Solar PV Plant (1 MW) and the 8 kW Small Power Generation System Project.

Projected Solar Farms

There are 3 projected solar farms: the ISA Paraguay Solar PV Park (200 MW), the 140 MW Solar Power Plant in Chaco, and the PASH and ERIH solar projects (100 MW).

Exact figure is not given but;¹⁰¹⁴

Current Demand

• The current off-grid demand in Paraguay is growing, particularly due to the large rural areas that lack connection to the national power grid.
• The interest in solar energy solutions is increasing as a result of the need for affordable and reliable energy sources in these remote territories.
• The demand for off-grid solar projects is driven by the need for clean energy solutions, such as solar water pumping systems, which are more sustainable and cost-effective compared to traditional diesel generators.
• Despite the slow overall growth in solar adoption due to low national electricity costs, there is a rising need for solar solutions in off-grid areas, reflecting a gradual shift towards more sustainable energy practices.
• Projects like the 8 kW Small Power Generation System highlight the existing demand for localized, reliable off-grid power, especially in remote or underserved areas.

Future Demand

• The demand for off-grid solutions is expected to grow as Paraguay continues to develop its renewable energy infrastructure.
• Projects such as the ISA Paraguay Solar PV Park and the 140 MW Solar Power Plant in Chaco, while primarily grid-connected, indicate a broader trend towards integrating more renewable sources, which could also spur increased interest in off-grid applications.
• The growth in renewable energy projects and efforts to diversify the energy mix drive higher future demand for off-grid solar solutions to complement grid expansion and enhance energy access in rural and remote regions.

Exact figure is not given but;⁴⁹¹⁵

Current Market Demand

• Limited Renewable Integration: Paraguay has a significant hydropower capacity, yet the domestic energy mix heavily relies on biomass (51% for cooking) and hydropower, with limited current integration of solar energy.
• Infrastructure Issues: Frequent power outages and a reliance on biomass indicate a potential for diversification in energy sources, but the current focus remains on hydropower and firewood rather than solar.
• Energy Consumption and Demand: Paraguay’s energy consumption increased by nearly 24% year-on-year to 2,624 GWh in March, with peak demand hitting a record 5,027 MW on March 14, driven by high temperatures. This surge in energy demand highlights the growing pressure on the existing grid and underscores the need for additional and diversified energy sources, such as solar panels, to manage peak loads and enhance grid reliability.

Projected Market Demand

• Future Energy Shortages: The Vice Ministry of Mines and Energy forecasts that by 2030, energy production may become insufficient to cover domestic demand. This potential shortfall creates a growing opportunity for alternative energy sources, including solar power.
• Climate Impact: The ongoing climate crisis and extreme weather conditions impacting hydroelectric production underscore the need for more diversified and resilient energy sources. Solar panels could become increasingly important as a supplementary or alternative energy source.

• The lowest average annual salary is approximately $3,649.24 USD.¹⁵
• The highest average annual salary is approximately $10,486.25 USD.
• The typical average annual salary is approximately $6,892.21 USD.

The current population of Paraguay is 6,939,666.¹⁶

Estimate for Factory Rent¹⁷

Average Warehouse Rental Cost

Rents are based on location and differ by specifications. Here is a summary of the warehouse rental options available in Paraguay to estimate the others.

1. Warehouse for Rent/Lease in Filadelfia, Boquerón¹⁷

• Location: Calle Lapacho, Filadelfia, Boquerón
• Size: 2,136 m² (44×48 meters)
• Monthly Rent: 1,540 USD
• Description: A spacious warehouse located close to Av. Hindenburg, ideal for strategic and versatile use.

2. Warehouse for Rent/Lease in Asunción, Pinoza²¹

Based on the commercial rental listings for Asunción, Paraguay, here is a range of monthly rents for properties in various areas:

• High end:
  • La Encarnación: $21,233 USD for 2,973 m²
  • Las Mercedes: $19,900 USD for 2,700 m²
• Mid-range:
  • Barrio Jara: $10,000 USD for 1,000 m²
  • Cañada Del Ybyray: $6,000 USD for 2,200 m²
• Low end:
  • Salvador Del Mundo: $5,500 USD for 308 m²
  • Trinidad: $3,934 USD for 281 m²

The range of rents spans from $3,934 USD to $21,233 USD depending on the location and size of the property.

Business Electricity Price ¹⁸

In January 2024, the electricity price for industrial consumers in Paraguay was 39 U.S. dollars per megawatt-hour.

Key Components of Administrative Costs

Salaries and Wages:¹⁵

• The lowest average annual salary is approximately $3,649.24 USD.
• The highest average annual salary is approximately $10,486.25 USD.
• The typical average annual salary is approximately $6,892.21 USD.

Rent for Office Space¹⁹

1. Regus (Paraguay)
   • Lowest: Approximately $51.67 USD/Month
   • Highest: Approximately $9,751 USD/Month
2. Perseverancia, Asunción
   • Monthly Rent: Approximately $57 USD
3. Edificio Citicenter, Asunción
   • Monthly Rent: Ranges from approximately $48 USD to $9,751 USD
4. Artigas, Asunción
   • Monthly Rent: Ranges from approximately $57 USD to $8,086 USD

Electricity Generation⁹

• Paraguay has reached an impressive milestone by sourcing 100% of its electricity from low-carbon sources.
• Almost entirely derived from hydropower, clean electricity constitutes 99.68% of the country’s total electricity generation.

 Transmission & Distribution

• The National Interconnected System (SIN) included 6,682 kilometers of transmission networks. Of this total, 10.6% were 500-kilovolt (kV) lines, 69.1% were 220 kV networks, and the remaining 20.3% were 66 kV lines.
• The transformers had a combined installed power of 15,585 megawatts (MW) across 94 substations.
• Additionally, the electricity distribution networks featured 68,331 kilometers of medium-voltage lines and 85,913 transformers with a total installed power of 6,561 MW.

Energy Access

Paraguay electricity access for is 100.00%, a 0.3% increase from 2022.

Energy Exports²⁰

• In 2022, Paraguay exported $1.66B in Electricity.
• The main destinations of Paraguay exports on Electricity were Brazil ($1.26B) and Argentina ($402M).

In Paraguay renewable energy, the regulatory framework for solar panel production and related activities is defined by several key laws and decrees. Here’s a summary of the current regulations and laws governing the solar panel industry and related sectors in Paraguay:
⁹

National Energy Policy 2016-2040 (Decree 6092)

October 2016: This policy outlines Paraguay’s long-term energy strategy, focusing on sustainable and efficient energy use. Key provisions include:

• Energy Security: Ensures self-supply, cost-efficiency, and environmental responsibility.
• Quality Services: Guarantees access to reliable energy and protects consumer rights.
• Resource Utilization: Promotes the use of national resources and reduces energy dependency.
• Regional Integration: Enhances Paraguay’s role in regional energy markets.
• Public Awareness: Educates the public on energy importance and sustainability.

Law No. 3,009 (2006)

Establishes the legal framework for independent RE electricity production and transport. Key aspects include:

• Licensing Regime: Provides licenses for self-consumption or export projects up to 2 MW.
• Co-Generation and Self-Generation: Regulates concessions and shared risk contracts for projects above 2 MW.

Law No. 5,984 (2017)

• Renewable Energy Promotion: Supports the sustainable use of all renewable energy forms based on national priorities.

Draft Legislation on Non-Hydraulic Renewables (March 2020)

• Proposes regulations for the production, commercialization, and incentives for non-hydraulic renewable energy sources.

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Investment and Financing

• Inter-American Development Bank (IDB): Provided USD 70 million for high-voltage transmission and energy efficiency (2020-2021) and technical support for clean energy projects with USD 850,000.
• Development Bank of Latin America (CAF): Approved loans of USD 170 million (2017) and USD 250 million (2019) for transmission system improvements and electricity distribution modernization.
• German Development Bank (KfW): Funded technical assistance and environmental impact studies for transmission works, investing around USD 110 million.

Private Sector Investments

• Bioethanol Production: Private investments in bioethanol and biodiesel have grown, including a USD 80 million investment in INPASA’s second alcohol plant (2018).
• Solar PV Projects: Planned investments include USD 18 million for a 20 MW solar power plant, contingent on pending legislation.

Public Sector Projects

• Generation Master Plan 2021-2040: ANDE plans to invest USD 1.88 billion in renewable projects, including 5 solar PV systems and 9 hybrid PV-diesel plants.
• Omega Green Project: Mobilizes USD 800 million for a biodiesel and biokerosene plant.

Funding Opportunities

• Development Finance Agency (AFD): Offers USD 40 million in loans and USD 2 million in non-reimbursable funds for renewable energy projects.
• Sustainable Finance Program: Provides USD 120 million in credit for energy efficiency projects through various international partners.

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Installed Projects ⁵

Filadelfia Solar PV Plant (1 MW):

• Location: Filadelfia, Paraguay.
• Capacity: 1 MW.
• Details: The Fernheim Cooperative inaugurated this photovoltaic solar power plant to meet the energy needs of 350 homes. Additionally, it will serve as an emergency network for public services in the city.

Project Name: 8 kW Small Power Generation System Project

• Location: Paraguay
• Capacity: 8 kW
• Details: Initiated in August 2019, this project involves installing a ground-mounted solar system in the suburbs of Paraguay. The system is designed as an off-grid solar solution to power an environmental monitoring device, ensuring its 24-hour operation. Despite the low power requirements, the custom 8 kW solar panel system by Anern Solar provides continuous operation and includes backup power to prevent outages. For inquiries on the 8 kW solar system price, please contact us directly.

Projected Projects

ISA Paraguay Solar PV Park (200 MW)

• Location: Paraguay
• Capacity: 200 MW
• Details: The ISA Paraguay Solar PV Park is a major solar photovoltaic project being developed by International Solar Alliance and NTPC, each holding a 50% stake. The project is planned as a ground-mounted solar facility. Construction is scheduled to start in 2025, with commercial operations expected to commence by 2027.

Project Name: 140 MW Solar Power Plant in Chaco

• Location: Chaco region, Paraguay
• Capacity: 140 MW
• Details: Announced by Paraguay’s national electricity authority, Administración Nacional de Electricidad (ANDE), this project marks Paraguay’s first large-scale solar power initiative. Construction is scheduled to start in late 2024, with the plant expected to become operational by early 2027. The project aims to reduce reliance on hydropower and fossil fuels by diversifying the country’s energy sources. It will operate under Paraguay’s Law on Non-Conventional Renewable Energies (Law No. 6977/23), which supports renewable energy development. With a total estimated cost of USD 140 million, the project is set to significantly contribute to Paraguay’s renewable energy goals over a 15-year period.

Investors PASH and ERIH Target Solar and 40MWh of Battery Storage Projects in Paraguay

• Location: Paraguay
• Capacity: 100 MW solar PV and 40 MWh battery storage
• Details: Investment firms PASH Global and ERIH Holdings have formed a joint venture to develop utility-scale solar and battery storage projects in Paraguay. The initial phase of this investment will focus on 100 MW of solar photovoltaic (PV) capacity and 40 MWh of standalone battery storage. This venture marks a significant step toward integrating large-scale renewable energy solutions in Paraguay and addressing the country’s energy storage needs. The projects are expected to contribute to Paraguay’s efforts in expanding its renewable energy infrastructure and improving energy reliability.

1. Company Name: Energía Alternativa S.A.

Website: www.energiaalternativa.com.py

Services:

• Project Advisory: Technical assistance and advice on renewable energy projects, including small-scale and large-scale installations. The team consists of engineers and designers specializing in renewable energy.
• Product Lines:
  • Solar Energy: Solutions for harnessing solar power, including solar panels and solar lights.
  • Hydropower: Products for pool and garden energy solutions, including ionizers and heat pumps.
  • Lighting: Economical solar-powered street and courtyard lighting.
• Experience
• 15 years of experience in renewable energy projects.
• 10,000 kW of photovoltaic energy installed.
• 1,000+ projects executed across over 10 cities in Paraguay.
• Featured Projects
  • Energy self-sufficiency project in Valenzuela.
  • Solar panel installations in Fortaleza 25 de Mayo Building, Asuncion.

2. Company Name: Capta Energy

Website: captaenergy.com

Services

• Valuation: Increases property value with solar energy systems.
• Savings: Offers up to 95% savings on electricity bills with a return on investment.
• Stability: Provides a photovoltaic system with a lifespan of 30 years and a manufacturer’s efficiency warranty of at least 25 years.

Additional Services

• Design and development of photovoltaic projects
• Support systems and consumption-saving solutions
• Renewable energy solutions for agricultural, commercial, residential, and industrial sectors

3. Company Name: Meeco Group

Service Areas: Global
Contact Numbers: +41 (41) 710 51 71
Email: info@meeco.net
Website: www.meeco.net

Services Provided

• Meeco Group offers a wide array of clean energy solutions, including strategic consulting, dedicated engineering support, and project delivery. They specialize in energy storage design, hybrid systems, feasibility studies, and ongoing monitoring.
• Their services are designed to enhance sustainability, efficiency, and financial viability for energy projects worldwide.
• They are working for off grid solutions in Paraguay.You can check details on: https://meeco.net/how-the-meeco-group-provides-paraguayan-off-grid-areas-with-clean-energy/