Peña praises Yguazú Digital deal but 'forgets' ANDE crisis over tariffs

President Santiago Peña presented his annual management report to Congress, emphasizing the potential of artificial intelligence and Itaipú negotiations within the energy sector. However, his address notably sidestepped the ongoing crisis between his cabinet and the National Electricity Administration (ANDE) concerning electricity tariffs, and the substantial risk of losing a $650 million investment due to these disagreements.

During his address to both legislative chambers, Peña championed the use of surplus resources and promoted the "Yguazú Digital" project. He described this initiative as a strategic alliance with Taiwan to create a sovereign computing center. "With our friends (from Taiwan), we will take a historic leap. We are at a decisive moment for artificial intelligence, and while the world debates energy limits, regulations, and technological sovereignty, we are taking the lead, supported by a unique advantage: our energy," Peña stated. He further elaborated that this partnership aims to build one of the world's largest sovereign artificial intelligence centers, merging Taiwanese cutting-edge technology with Paraguay's energy capacity.

Peña's plan intends to position Paraguay as the technological hub of the Southern Cone, fostering high-quality employment and increasing public revenue through digital service exports. He briefly mentioned the modernization of the "non-conventional renewable energy regime," referring to the regulation of Law No. 7599/2025.

Despite the optimistic tone and references to a "state vision," Peña's report avoided critical and urgent issues in the current energy agenda. He made no mention of the severe controversies surrounding energy decrees issued, modified, and later rescinded by the Executive Branch, which have created legal uncertainty in the sector. This lack of foresight jeopardizes the installation of the green hydrogen plant by British firm Atome Energy, valued at $650 million. The investment is at risk because the government cannot guarantee the 15-year fixed tariff initially promised and sealed in Decree No. 5861, which was later annulled. The initial promise of a long-term preferential tariff for Atome had to be canceled following strong warnings from sector technicians and ANDE itself.

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With our friends (from Taiwan), we will take a historic leap. We are at a decisive moment for artificial intelligence, and while the world debates energy limits, regulations, and technological sovereignty, we are taking the lead, supported by a unique advantage: our energy.