ParaguayParaguay , officially the Republic of Paraguay , is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the...
is one of the few countries in
Latin AmericaLatin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
that has maintained an integrated
public monopolyA public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...
on
electricityElectricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
.
HydropowerHydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
comprises nearly 100 percent of
electricityElectricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...
in Paraguay; 90 percent of generated energy is exported, with neighboring
ArgentinaArgentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
and
BrazilBrazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
receiving the majority. Paraguay is one of the world’s largest electricity net exporters.
Because of the dominance of
hydroelectricityHydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...
,
tariffA tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s (mostly residential) are remarkably below the averages for the region. However, despite the abundance of resources, the Paraguayan electricity system faces a difficulty due to the lack of
investmentInvestment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
in transmission and distribution networks. In addition, distribution losses are among the highest in the region.
Installed capacity and generation
Paraguay is the only country in Latin America with almost 100 percent hydroelectric generation capacity (8,116
MWThe watt is a derived unit of power in the International System of Units , named after the Scottish engineer James Watt . The unit, defined as one joule per second, measures the rate of energy conversion.-Definition:...
) in 2005.
Paraguay operates two binational hydroelectric dams. Itaipu dam, by far the largest power station in the country, is operated with
BrazilBrazil has the largest electricity market in South America, with a power consumption that is more than double the combined consumption of Argentina, Bolivia, Chile and Uruguay. Its installed capacity is comparable to that of Italy and the United Kingdom, although with a much larger transmission...
and has an installed capacity of 7000 MW (86 percent of Paraguay's generation capacity).
YacyretáThe Yacyretá Dam or Hydroelectric Power Station Jasyretâ-Apipé is a dam and hydroelectric power plant built over the waterfalls of Jasyretâ-Apipé in the Paraná River, between the Argentine Province of Corrientes and the Paraguayan City of Ayolas. The dam is named for Yacyretâ Island just upstream,...
, the second largest hydroelectric facility, has an installed capacity of 900 MW (11 percent), and is operated with
ArgentinaThe electricity sector in Argentina constitutes the third largest power market in Latin America. It relies mostly on thermal generation and hydropower generation , with new renewable energy technologies barely exploited. The country still has a large untapped hydroelectric potential...
. A third plant, Acaray has an installed capacity of 210 MW (3 percent). Thermal plants contribute less than 0.1 percent.
All of Paraguay's electricity for domestic consumption comes from a single facility, the binational 14 GW Itaipu hydroelectric dam.
| AsunciónAsunción is the capital and largest city of Paraguay.The "Ciudad de Asunción" is an autonomous capital district not part of any department. The metropolitan area, called Gran Asunción, includes the cities of San Lorenzo, Fernando de la Mora, Lambaré, Luque, Mariano Roque Alonso, Ñemby, San...
area), where over 60% of the total national consumption is located.
Electricity consumption by consumer group is divided as follows:
- Residential: 41%
- Commercial: 18.3%
- Industrial: 26%
- Others: 14.2%
In 2004, the country consumed only 16% of its 50% share of Itaipu’s production, exporting the rest to Brazil. As for Yacyreta, Paraguay consumes less than 1% of its share, exporting the rest to Argentina.
The electricity interconnections that allow power exchanges with Brazil and Argentina are:
| Entities |
Country |
Supply point |
Voltage (kV) |
Power (MW) |
| FURNAS, ELECTROSUL, ELECTROBRAS |
Brazil |
Itaipu |
500 |
7,000 |
| EBISA |
Argentina |
Yacyretá |
500 |
1,540 |
| ENERSUL |
Brazil |
Pedro Juan Caballero |
23 |
3 |
| COPEL |
Brazil |
Acaray |
132 |
50 |
| EMSA |
Argentina |
C.A. López |
132 |
30 |
| TRANSNEA/EDEFOR |
Argentina |
Guarambaré |
220 |
80 |
Source: ESMAP, 2006
Access to electricity
In 2005, almost 90% of the population in Paraguay had access to electricity, which is just slightly below than the 94.6% average for LAC-Places:* Los Angeles County in California* La Crescenta, California, unincorporated area in Los Angeles County* California State Prison, Los Angeles County...
The 2002 Census revealed that 87% of the households without electricity were located in rural areas, where access was about 77%. Rural coverage varies considerably among the different regions of the country. It is lowest in the remote and sparsely populated ChacoThe Paraguayan Chaco or Región Occidental is a semi-arid region in Paraguay, with a very low population density.The Chaco is a large geographic area that is sparsely populated. Many of those living in the region are native peoples...
, or Western region. The table below shows rural coverage by Department for 2002:
See also:Departments of Paraguay|Paraguay consists of 17 departments and one capital district . These are, with their capitals indicated in parentheses:- External links :...
(including a map)
| weighted average The weighted mean is similar to an arithmetic mean , where instead of each of the data points contributing equally to the final average, some data points contribute more than others...
for LAC-Places:* Los Angeles County in California* La Crescenta, California, unincorporated area in Los Angeles County* California State Prison, Los Angeles County...
, 13 interruptions, the duration is well below the weighted averageThe weighted mean is similar to an arithmetic mean , where instead of each of the data points contributing equally to the final average, some data points contribute more than others...
of 14 hours.
Blackouts
Despite consuming less than 6 TWh per year and exporting close to 45 TWh per year, Paraguay faces blackouts as well as a serious risk of suffering an energy crisis. This is the result of the limitations of both the transmission and distribution systems. The ceiling of the system is placed by ANDE’s at 1,700 MW, with demand above 1,500 MW in 2008. Transmission capacity is urgently needed to avoid a supply crisis in a system in which quality and an adequate technical service is practically nonexistent.
Different authors believe that the price received for the electricity sold to Brazil (from Paraguay’s share in Itaipu) and also to Argentina to some extent (from its share in Yacyreta) is currently too low. The “fair price” established by the Itaipu Treaty was conceived on the basis of a “compensation for concession of energy” and not on the basis of a commercial exchange. This price has remained very low (about US$2.81 per MWh). It is argued that, if this price was more in line with actual electricity prices in the Brazilian market, Paraguay would have enough resources to strengthen its electricity transmission capacity.
Distribution and transmission losses
In 2005, distribution losses in Paraguay were has high as 31%, well above the 13.5% weighted averageThe weighted mean is similar to an arithmetic mean , where instead of each of the data points contributing equally to the final average, some data points contribute more than others...
for LAC-Places:* Los Angeles County in California* La Crescenta, California, unincorporated area in Los Angeles County* California State Prison, Los Angeles County...
and up from about 22% in 2001
System losses have become a serious problem in the last few years, having followed a continuous upward trend. The highest percentage of losses occurs in the National Interconnected System (SIN), while the remaining corresponds to the bi-national enterprises. In the SIN, distribution losses represented 23% of the total in 2003, while transmission losses, according to ANDE, were 7.3%. ANDE has established a 23% target for electricity losses for the year 2010.
Responsibilities in the electricity sector
Responsibilities in the Paraguayan electricity sector are concentrated in a single, vertically integrated public monopoly, the National Electricity Administration (Administración Nacional de Electricidad, ANDE).
Policy and regulation
Law 167/93 indicates that the Vice ministry of Mines and Energy (under the Ministry of Public Works and Communication) is responsible for establishing and guiding energy policy, as well as for the study of the technical, economic, financial and legal aspects that promote energy use. However, the Vice ministry does not have the adequate resources to effectively perform its functions.
In practice, all the energy responsibilities are concentrated in ANDE, which is the de facto electricity regulator and provider. ANDE also elaborates the tariff structure, which is then analyzed and approved by the Economic Council of the Executive Power. The Council usually sets lower tariffs to the ones proposed by ANDE, which leads to a lack of resources for the necessary investment for adequate performance of the electricity system.
Generation, transmission and distribution
ANDE controls the country’s entire electricity market, including generation, transmission and distribution. ANDE operates only one hydroelectric dam, Acaray, and six thermal power plants, with total installed capacity of 220 MW. It is also responsible for Paraguay’s share of Itaipú and Yacyretá, the two bi-national hydroelectric facilities (See bi-national facilities above).
ANDE operates 2,100 miles of transmission lines in the Interconnected National System, divided in 6 subsystems, and 670 miles of distribution lines. It is also responsible for all of the distribution, with two exceptions: CLYFSA (Compañía de Luz y Fuerza, S.A.), which has a concession to distribute and commercialize electricity in VillarricaVillarrica is a city located in the middle of the Oriental Region of the Paraguayan territory, is capital of the Guairá Department. It was founded by the Spanish Captain Ruy Diaz de Melgarejo on May 14, 1570 in the old Guaira, today in Brazilian territory....
, and the Empresas Distribuidoras Menonitas del Chaco Central.
Itaipu dam
In April 1973, the governments of Paraguay and Brazil signed the Itaipu Treaty, by which it was decided to create a binational entity to hydroelectric use of the Paraná RiverThe Paraná River is a river in south Central South America, running through Brazil, Paraguay and Argentina for some . It is second in length only to the Amazon River among South American rivers. The name Paraná is an abbreviation of the phrase "para rehe onáva", which comes from the Tupi language...
. This entity was constituted by ANDE (Paraguay) and ELECTROBRAS (Brazil). US$100 million where contributed in equal parts by both companies.
Yacyretá Dam
In December 1973, the governments of Argentina and Paraguay signed the Yacyreta Treaty, by which ANDE and Agua y Energía constituted the Binational Entity, whose aim is the hydroelectric use of the Paraná river. US$100 million where contributed in equal parts by both companies.
Corpus Christi
In 1971, Paraguay and Argentina created the River Parana Joint Commission (Comisión Mixta del Río Paraná, COMIP), which started to carry out different studies (pre-feasibility, environmental, etc.) for the Corpus project, to be located upstream of the Paraná river, close to the towns of Corpus (in the Argentina Misiones ProvinceMisiones is one of the 23 provinces of Argentina, located in the northeastern corner of the country in the Mesopotamiсa region. It is surrounded by Paraguay to the northwest, Brazil to the north, east and south, and Corrientes Province of Argentina to the southwest.- History :The province was...
and Puerto Bella Vista in Paraguay. In the mid 1980s, Argentina, Paraguay and Brazil signed a tripartite agreement that established the operating height of the project, which would allow to bring into line the operation of Corpus with those of Yacyreta and Itaipu.
The different alternatives for this project are still under study. As a large hydroelectric project, with installed capacity of about 3,000 MW and annual generation of about 19,000 GWh, Corpus is a controversial project that is opposed both at the regional and social levels. In April 1996, in a plebiscite in the Misiones ProvinceMisiones is one of the 23 provinces of Argentina, located in the northeastern corner of the country in the Mesopotamiсa region. It is surrounded by Paraguay to the northwest, Brazil to the north, east and south, and Corrientes Province of Argentina to the southwest.- History :The province was...
, the construction of the dam was opposed by almost 89% of the voters.
Tariffs
In 2006, the average national tariff in Paraguay was US$0.080 per kWh Tariffs for the different consumer groups were:
- Residential: US$0.091/kWh (weighted average
The weighted mean is similar to an arithmetic mean , where instead of each of the data points contributing equally to the final average, some data points contribute more than others...
for LAC-Places:* Los Angeles County in California* La Crescenta, California, unincorporated area in Los Angeles County* California State Prison, Los Angeles County...
in 2005: 0.105)
- Commercial: US$0.090/kWh
- Industrial: US$0.056/kWh (weighted average
The weighted mean is similar to an arithmetic mean , where instead of each of the data points contributing equally to the final average, some data points contribute more than others...
for LAC-Places:* Los Angeles County in California* La Crescenta, California, unincorporated area in Los Angeles County* California State Prison, Los Angeles County...
in 2005: 0.1075)
- General: US$0.075/kWh
- Others: US$0.094/kWh
Subsidies
In November 2004, the Paraguayan Government approved Law 2,501, which broadened the electricity social tariff applied by ANDE. The social tariff is applied to residential users below 150kWh of monthly consumption. Currently, about 37% of total customers benefit from this tariff. ANDE estimates that this share will gradually increase to 56% of the total.
Investment and financing
Investments for maintenance and expansion of the necessary assets to provide electricity service have been executed with the support of multilateral credit institutions.
Summary of private participation in the electricity sector
The National Electricity Administration (Administración Nacional de Electricidad, ANDE), Paraguay’s state-owned utility, controls the country’s entire electricity market, including generation, transmission and distribution.
Two small companies buy electricity from ANDE and have concessions to distribute and sell it: CLYFSA (Compañía de Luz y Fuerza, S.A.) in VillarricaVillarrica is a city located in the middle of the Oriental Region of the Paraguayan territory, is capital of the Guairá Department. It was founded by the Spanish Captain Ruy Diaz de Melgarejo on May 14, 1570 in the old Guaira, today in Brazilian territory....
, and the Empresas Distribuidoras Menonitas del Chaco Central.
| LAC -Places:* Los Angeles County in California* La Crescenta, California, unincorporated area in Los Angeles County* California State Prison, Los Angeles County...
region after Haiti’s.
CDM projects in electricity
Currently (August 2008), there are no registered CDMThe Clean Development Mechanism is one of the "flexibility" mechanisms defined in the Kyoto Protocol . It is defined in Article 12 of the Protocol, and is intended to meet two objectives: to assist parties not included in Annex I in achieving sustainable development and in contributing to the...
projects in any sector in Paraguay. The low emission factor of a fully hydroelectric system is most likely the reason for the absence of this type of projects in the electricity sector.
Inter-American Development Bank
Currently, the Inter-American Development BankThe Inter-American Development Bank is the largest source of development financing for Latin America and the Caribbean...
(IDB) is contributing funds and assistance to one project in the electricity sector in Paraguay:
- Phase I of a Multi-Phase Power Transmission Program supported through a US$69.5 million credit. The objective of this project, which was approved in December 2006 but has not disbursed any funds as of August 2008, is to strengthen transmission networks in already served areas as well as to extend them to areas still not being served.
The IDB is also providing technical assistance under two activities:
- Support for Paraguay's Electrical Sector Modernization. The objective of this support is to "execute studies that will formulate the fundamental and integrated actions, to increase the total loss management capacity of the ANDE in these categories: i) management of loss, ii) prospection of losses, iii) regularization of systems and facilities, iv) collection of the recovered revenue, and v) loss prevention."
See also
- Paraguay
Paraguay , officially the Republic of Paraguay , is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the...
- Economy of Paraguay
Paraguay has a market economy characterized by a large informal sector. Agriculture dominates the economy, but unequal land distribution has resulted in a large class of peasant farm laborers. A large portion of the population is uninvolved in the formal economy, instead existing as subsistence...
- Water supply and sanitation in Paraguay
Despite many years of concerted efforts and achievements in expanding coverage and improving service sustainability, many issues remain to be addressed in the water and sanitation sector...
- History of Paraguay
The history of Paraguay is poorly documented, as almost no archaeological research has been done and little is known of Paraguay's pre-Columbian history. What is certain is that the eastern part of the country was occupied by Guaraní peoples for at least 1,000 years before the Spanish colonization...
- Politics of Paraguay
Politics of Paraguay takes place in a framework of a presidential representative democratic republic and of a multi-party system....
Sources
Casco Carreras, 2008. Presente y Futuro del Sector Energético Nacional. Centro de Análisis y Difusión de la Economía Paraguaya
ESMAP, 2006. Estrategia para el desarrollo del sector eléctrico del Paraguay.
Suarez Montorfano, 2007. El Proyecto hidroeléctrico Corpus Christi
External links
The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.
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