ANDE president explains tariff issue blocking green hydrogen plant

Félix Sosa, president of Paraguay's National Electricity Administration (ANDE), has clarified the tariff dispute hindering the establishment of a major green hydrogen fertilizer plant. The government recently rescinded two controversial decrees that set the terms for electricity rates and contracts for high-energy-consumption industries, following protests from ANDE unions.

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In no moment was there pressure from any sector, there has always been teamwork and dialogue.

The international company Atome plans to build a fertilizer plant using green hydrogen in Paraguay. Atome sought a 15-year contract guaranteeing a fixed electricity price of $30 per megawatt-hour (mWh). This rate is substantially lower than those applied to other industries and below ANDE's established "technical rate" of $44.33 per mWh for large clients consuming 250 MW.

Sosa explained that ANDE explored various options with Atome, including gradual tariff increases over five-year periods to align with the technical rate. However, Atome insisted on maintaining the $30 rate for the project's viability. The possibility of the Itaipú Binacional hydroelectric plant compensating ANDE for the difference was also considered but not finalized.

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the president suggested that the most convenient thing is to review the situation in order to continue advancing for the installation of this type of industry.

President Santiago Peña suggested reviewing the situation to facilitate the industry's installation. Sosa confirmed ongoing dialogue with Atome, leaving open the possibility of "creative ideas" to move the project forward. He firmly denied any external pressure to approve the contract, emphasizing a collaborative approach with the government.

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there could be 'creative ideas' that allow the undertaking to move forward.