Paraguay invites Brazil to procure 100MW in ‘historic’ process

Paraguay’s state power company Ande has launched a process for Brazilian power sector agents to procure 100MW.

The energy will come from surplus energy generated by Ande’s 200MW Acaray hydro plant and be dispatched to Brazil via the Itaipu hydroelectric dam on the countries’ border.

The call is open to companies authorized by Brazil’s mines and energy ministry (MME) and participants must follow guidelines established by Brazil’s electricity trading chamber CCEE.

Contracts may be for up to six years with a one-year minimum, according to reference terms available in the Documents box in the top right corner. Offers are due July 1.

Under a recent MOU signed by Brazil and Paraguay related to Itaipu terms, authorities agreed to allow Ande to export power to Brazil’s free market.

Ande originally submitted a request to the MME to evaluate the feasibility of dispatching power in September.

“Today is an historic day for Paraguay and mainly for the Paraguayan electricity system because we begin the possibility of placing our Paraguayan energy in the great Brazilian electricity market,” Ande head Félix Sosa said in a Paraguayan government release.

Read Spotlight: Brazil’s wave of private power purchase agreements and Brazil’s free power market forecast to grow 1pp annually