Does Paraguay need to expand its power system?
Also, we estimated the annual revenues for the government of Paraguay and Itaipu through its electricity exports to Brazil. We find that Paraguay needs to expand the capacity of its power system, mainly by investing in hydropower plants, to cover its future electricity needs and sustain national electricity export levels.
What is the electricity export price between Paraguay and Brazil?
Explicitly, Annex C of the Itaipu treaty specifies the electricity export price (45.2 USD/MWh) between Paraguay and Brazil. Brazil pays to Itaipu Binacional, the cost of producing the electricity and a compensation rate of about 9 USD/MWh to Paraguay for using the part of the Paraguayan share of the electricity produced [ 9 ], 10.
What is the electricity system of Paraguay?
The electricity system of Paraguay is mainly powered by two binational (Itaipu, Yacyreta) and one national (Rio Acaray) hydropower plant. The Parana River, located in the Southeastern area of the country, is responsible for most of this hydroelectric generation potential.
Why is strategic energy planning important in Paraguay?
The electricity demand projections analyzed emphasize the importance of strategic energy planning. Even though Paraguay has overcapacity in the power system to supply domestic electricity demand, the generation capacity needs to be expanded in the future.
How much power does Paraguay have?
The total installed capacity of the country was 8844 MW in 2017, with hydro constituting the majority (99.7%). The electricity system of Paraguay is mainly powered by two binational (Itaipu, Yacyreta) and one national (Rio Acaray) hydropower plant.
How important is Itaipu electricity to the Paraguayan electricity market?
The participation of Itaipu electricity in the Paraguayan market has been increased from 73% in 2012 to almost 90% in 2019. This gradual increase emphasizes the importance of Itaipu´s electricity supply to the Paraguayan electricity market.
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