Paraguay has activated the bidding process for its first utility-scale solar project , which, as reported by Energía Estratégica, will have a capacity of 140 MW in Loma Plata, the main urban center of the Central Chaco, located 450 km from Asunción.
The National Electricity Administration (ANDE) has already sent the bidding terms and conditions for the first tender, structured under the regulations of Law No. 7599/2025 , to the National Directorate of Public Procurement (DNCP) . The public consultation will take place on Monday, June 1st of this year.
The decree was the missing regulatory piece needed to unlock a call for bids announced years ago and repeatedly postponed. With this move, Paraguay formally opens the door to large-scale solar development in a system historically focused on hydroelectric generation.
The project will be developed in Loma Plata , where ANDE has already secured the territorial component to reduce real estate risks, since the state-owned company signed a 30-year lease agreement with a local Mennonite cooperative to guarantee 200 hectares located just 5 kilometers from the regional substation .
Furthermore, this initial experience in Chaco Central will serve as an operational test for future projects. Following the public hearing, the process will move forward with the official bidding process and its corresponding award, while the construction phase and electromechanical assembly would take place between 2027 and 2028 , with commercial operation planned for 2029 .
It should be clarified that all the energy generated will be purchased exclusively by ANDE , with no possibility of allocating production to other buyers. In return, the winning bidder must comply with specific operating standards: a minimum availability of 93% during the first year and 95% in subsequent periods .
The contract will have a maximum term of 30 years , divided into 1.5 years for construction, 27 years for operation and maintenance, and six months for decommissioning . The contract will be awarded solely on price, as bids must be submitted in USD/MWh and the lowest bid will be selected.
The filter for participation will also be demanding, given that bidders must prove a minimum net worth of USD 10 million or annual revenue of USD 25 million , along with letters of intent for financing of at least USD 60 million .
On the technical front, demonstrable experience in photovoltaic development will be required: 140 MW accumulated in the last five years , including at least one project of 50 MW or more , in addition to previous experience in high voltage interconnection.
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One of the most sensitive aspects of the process will be the reference price. Unlike other schemes, the evaluation will not be based on ANDE's average tariff, but rather on a maximum price developed with technical assistance from the Inter-American Development Bank (IDB) .
While the payments will be backed by a trust established between the Ministry of Economy and Finance and the Development Finance Agency (AFD) , a structure aimed at guaranteeing financial compliance and reducing the perception of risk among investors and financiers.
But the official objective goes beyond this call for bids. The Loma Plata plant is not intended as an isolated project, but as the first operational test of a broader renewable energy expansion strategy.
Therefore, if the model works, Paraguay will move forward with serial tenders in other regions of the country , accelerating the incorporation of non-hydroelectric generation into its electricity matrix.