Paraguay faces an energy paradox: while electricity consumption surges, the infrastructure projects needed to sustain that growth advance slowly. The National Electricity Administration (ANDE) invests between US$300 and 340 million per year, but the state-owned company's master plan estimates that just over US$600 million annually for a decade would be needed to keep pace with demand.
“Several projects that should already be in operation have not been completed; some are under construction and others have not even been tendered,” says engineer Guillermo Krauch of the Paraguayan Institute of Electrical Sector Professionals (IPPSE). He notes that the peak demand recorded in January 2026, 5,725 megawatts, already exceeds the 2027 forecast. “Reality is outpacing the projections,” he sums up.
The mismatch between supply and demand does not mean a widespread blackout, but Krauch warns that there will be regions with real supply deficiencies. “In a transmission and distribution system, planning includes backup equipment. When there is not enough investment, that safety margin disappears,” he explains.
The rapid growth in consumption — three to four times above forecast — is driven by large consumers such as crypto mining and artificial intelligence (AI) data center projects. Although these contracts bring extra dollar revenue to ANDE, they also shorten the time until substations become saturated.
Engineer Daniel Ríos Festner, an energy planning consultant, points out that the real bottleneck is not technical but financial. “ANDE has a mismatch between its costs and the tariff charged to end consumers. There is no automatic tariff adjustment mechanism,” he says. For him, ensuring the financial solvency of the state-owned company is essential.
According to the master plan, Paraguay would reach the limit of surplus energy from Itaipu and Yacyretá around 2030. With annual growth of 20% (compared to the forecast 5%), that deadline could be brought forward to 2029 — or even sooner if a drought like that of 2021 occurs. “From 2029 or 2030, the country will need to incorporate the equivalent of two Acaray plants per year into the system,” Krauch warns.
To meet the challenge, Krauch advocates legal certainty for private investors in power generation, with the regulation of already enacted laws. “If we start today, between financing, permits and construction, we are talking about four or five years. We need more speed,” he concludes.