President Santiago Peña signed Decree No. 6034 on Tuesday evening, regulating Law No. 7599/2025 on the modernization of electricity generation from non-conventional, non-hydro renewable sources. The signing took place in the presence of Chief of Staff Javier Giménez and the Presidency's legal adviser, Roberto Ilo Moreno.
The new regulation enables the private sector to generate energy using sources such as solar, wind, biomass, biogas and geothermal. Companies will also be able to buy, sell and export the energy produced, as well as participate in tenders by the National Electricity Administration (ANDE) to cover domestic demand.
"The modernization of the energy sector takes a decisive step. With the regulation of the Non-Conventional Renewable Energy Law, Paraguay turns a strategic vision into a concrete operational framework to attract investment, diversify its energy mix and keep pace with the sustained growth of national electricity demand," Peña wrote on his social media.
The law had been enacted in December last year but lacked regulation to come into force. The enforcement authority will be the Ministry of Public Works and Communications (MOPC), through the Vice Ministry of Mines and Energy, which must annually set the reference tariff for non-conventional renewable energies based on cost reports from ANDE.
The regulation also establishes technical conditions for self-generation, cogeneration and distributed generation, allowing residential, commercial and industrial users to produce their own energy and inject surpluses into the National Interconnected System. ANDE stated that the measure will strengthen the country's energy security and boost new projects.
With this opening, the government expects to diversify an energy mix historically dominated by state hydroelectric generation from binational entities and ANDE. Successful bidders must establish a corporation in Paraguay, and the bidder must hold at least 51% of the shares.