Carlos Pombo, former general manager of Uruguay's National Administration of Power Plants and Electrical Transmissions (UTE), stated that Paraguay has a "brutal advantage" in the regional electricity market due to its potential for energy exports. The statement was made during his participation in a panel organized by the Business Advisory Council – Energy Roundtable in Paraguay.
Pombo explained that Uruguay attracted private investments in energy through long-term contracts known as Power Purchase Agreements (PPAs). These agreements guarantee the purchase of energy for periods of 20 to 25 years, allowing investors to recover their investments with a profit margin of about 7% to 8%. "No one is going to put up $100 million to build a wind farm. The investor contributes a portion and gets the rest financed," he highlighted.
The expert also emphasized the importance of smart meters, which have been implemented for 100% of the 1.67 million customers in Uruguay. This technology eliminates the need for manual readings and allows consumption to be measured every 15 minutes. Furthermore, smart meters facilitate the identification of shiftable consumption to times of lower demand, reducing peaks and optimizing infrastructure investments.
Pombo also mentioned advanced technologies to combat non-technical losses, such as witness meters installed per block that detect fraud by comparing the total energy input with the sum of individual consumptions. "If there is a significant difference, the system immediately indicates that there are people connected irregularly to the grid," he explained.
Regarding regional integration, Pombo highlighted that Paraguay can better position itself in the energy market by taking advantage of periods of excess production. He cited Uruguay's experience, which went from being an importer to an exporter of energy, using an hourly pricing system and a market administrator to manage instant demand and available supply.