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13/02/2024

On February 12, 2023, the Executive Branch promulgated Decree No. 1168/2024 (“Decree 1168/24”) which regulates Law 6977/2027 "QUE REGULA EL FOMENTO, GENERACIÓN, PRODUCCIÓN, DESARROLLO Y LA UTILIZACIÓN DE ENERGÍA ELÉCTRICA A PARTIR DE FUENTES DE ENERGÍAS RENOVABLES NO CONVENCIONALES NO HIDRÁULICAS" (“Law 6977/23”).

Decree 1168/24 regulates, among other aspects, the following:

  1. The processes for obtaining the various types of licenses for Non-Conventional Renewable Energies (NCRE) provided for in Law 6977/2023 (such as: NCRE Self-generator; NCRE Generator; NCRE Exporter; NCRE Cogenerator), as well as their duration and the grounds for their cancellation;
  2. The regulation applicable to each type of NCRE license and its related activities;
  3. The incentive regime applicable to NCRE licensees; and,
  4. The dispute resolution regime between licensees and the State.

Other important aspects, such as the formula for the NCRE Reference Tariff (the tariff that the State must pay to licensees – except for the NCRE Exporter – for the acquisition of electric energy) will be established through administrative resolutions of the implementing authority, the Ministerio de Obras Públicas y Comunicaciones (Paraguay’s Ministry of Infrastructure) through the Viceministerio de Minas y Energía (Deputy Ministry of Mines and Energy).

To access the full text of Decree 1168/24 click here.

For more information on Decree 1168/24 and Law 667/23 or any other aspect related to the Energy sector in Paraguay, please contact our partners: Rodolfo G. Vouga (rgvouga@vouga.com.py) and Manuel Acevedo S. (macevedo@vouga.com.py)

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