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Paraguay official defends low Atome energy tariff as 'investment,' not 'loss'
🇵🇾 Paraguay /Economy & Trade

Paraguay official defends low Atome energy tariff as 'investment,' not 'loss'

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Paraguay's Chief of Staff, Javier Giménez, defended the government's decision to offer a low electricity tariff for the Atome green hydrogen plant.
  • Giménez argued the rate was an investment in job creation and development, not a financial loss for the state energy company ANDE.
  • He stated that selling energy at $30/MWh, close to ANDE's generation cost, was acceptable to foster industrialization and national development.

Paraguay's Chief of Staff, Javier Giménez, defended the government's controversial decision to offer a low electricity tariff for the Atome green hydrogen plant, asserting it was a strategic investment rather than a patrimonial loss.

Giménez explained that the decrees, initially signed in January and later modified with union input, aimed to provide predictability for investments that would industrialize Paraguay's surplus energy. He argued that selling power to Atome PLC at a fixed rate of $30 per megawatt-hour (MWh) for 15 years did not represent a subsidy, as ANDE's average generation cost is around $28/MWh.

There is no subsidy.

— Javier GiménezGiménez asserted that the proposed electricity rate for Atome did not constitute a financial loss for the state energy company.

"There is no subsidy," Giménez stated, pushing back against claims of financial harm to the state energy company. He acknowledged that the $30/MWh rate might seem low compared to what cryptocurrency miners pay ($42-$44/MWh), but emphasized that it did not result in a direct loss. He also pointed out that local industries were already paying around $28-$33/MWh, urging against selective indignation.

The state must be willing to earn less in certain segments because the development compensates.

— Javier GiménezHe argued that prioritizing national development justifies lower immediate returns on energy sales.

Giménez contended that ANDE's role should extend beyond immediate financial profitability to acting as a driver of national development. "The state must be willing to earn less in certain segments because development compensates," he argued. The difference of about $12/MWh compared to other sectors was, in his view, an investment expected to yield triple returns in employment, taxes, and infrastructure.

He drew a parallel to the government's successful policy of regulating cryptocurrency mining, which now contributes significantly to ANDE's revenue. Giménez believes that prioritizing job creation and industrial growth justifies accepting lower immediate returns on energy sales, framing the Atome deal as a crucial step towards national development.

Those 12 dollars of difference with other sectors were an investment to receive three times more in employment, taxes, and infrastructure.

— Javier GiménezGiménez quantified the expected benefits of the Atome deal in terms of economic and social development.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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