Although the Paraguayan government has regulated Law No. 7599 on Non-Conventional Renewable Energies as a way of opening the market to the private sector, experts warn that residential or commercial self-generation is far from becoming a profitable business under current conditions. The main obstacle is precisely the low cost of ANDE's electricity tariff — one of the cheapest in the world — which makes feeding surplus energy into the grid financially unattractive in the short term.
The debate took place during the panel "Energy and Construction in Paraguay: Challenges for Sustainability," organized by Cecoel at the 26th edition of Constructecnia. Nicolás Foissac, an energy transition consultant and member of the Paraguayan Association of Renewable Energies (APER), questioned the expectation of an immediate solar panel boom. "We have grown used to consuming a lot of cheap energy with a notion of infinite surplus. That has held back many conversations over time, because for more than 40 years we have not had to worry about how to get more energy," he said.
Foissac argued that although the press and official speeches present the new regulation as an opportunity for enrichment, the technical and financial reality is different. With a subsidized, globally low tariff, private generation projects cannot achieve a financial return that justifies the high installation costs. The consultant cited his recent experience in Europe, where, even with high electricity and fuel prices, solar companies in France receive purchase tariffs lower than those practiced in Paraguay.
According to the expert, the real opportunity for investors lies in industrial self-consumption and large-scale projects for critical areas such as the Chaco. Sugar mills that have biomass for cogeneration can find profitability by feeding energy into the grid on a steady basis, while factories can use solar energy to reduce operating costs during the week and feed surplus into the grid on weekends in exchange for bill credits.
The other relevant market is that of large consumers, who demand 30 megawatts or more. An industrial park could be set up as a single purchasing unit and be supplied directly by a large-scale private solar plant. However, these projects require high investments — between $750,000 and $1.3 million per megawatt or hectare — and contracts with a minimum 30-year stability, including legal guarantees that the plant will continue operating even if the original customer ceases activities.
Foissac considered the economic logic behind a 140-megawatt solar plant project in Loma Plata, announced by ANDE's presidency, to be sound. The initiative seeks to bring generation closer to distant consumption points, such as the Western region, avoiding service collapse and reducing the need for expensive backup generators used by local industries amid frequent power outages.
Although the regulatory decree of Law 7599 is considered an important step forward, it opens a period of technical uncertainties. The local market will need to learn how to manage bidirectional meters and the absorption of energy credits. Furthermore, it remains undefined whether the Ministry of Public Works and Communications (MOPC) or ANDE will be responsible for inspecting and quality-controlling private connections.
The consultant also warned of a risk observed in developed markets: the massive and disorderly injection of solar energy during peak hours can drive down the purchase price due to oversupply. For Foissac, the real takeoff of residential and commercial solar energy on a large scale in Paraguay will only happen when ANDE raises its tariffs — a scenario that, for now, is not on the horizon.