On August 5, 2024, Law 7299/2024 (“Law 7299”) was published in edition number 154 of the Official Gazette, introducing significant modifications to Law No. 3009/2006 on the Production and Independent Transport of Electric Energy (PTIEE) (“Law 3009/2006”). The amendments affect several key articles, including articles 3, 4, 5, 12, 13, 25, 26, 28, 30, 31, 32, 33, and 34, among which the following modifications stand out:

Main Modifications

Article 3 – Definitions

• Hydraulic Electric Generation: The preferential rights for the use of hydraulic resources for electricity generation have been expanded from 2MW to 50MW. The National Electricity Administration (ANDE) must now compete on equal terms with private entities in energy generation projects with capacities between 1MW and 49MW.
• Minor Hydraulic Generation: The maximum power limit for being considered minor hydraulic generation is increased from 2MW to 50MW, aligning with the previous definition.
• Independent Electric Energy Producer and/or Transporter (PTIEE): Those who sign a Minor Hydroelectric Generation contract with the competent authority or are awarded a contract for electric generation will be considered PTIEE. The previous definition included those who signed a License Contract for independent energy generation and/or transportation or a Shared Risk Contract with ANDE.
• License: The new definition of License also includes the activity of electric energy transportation, whereas the previous one limited the License to energy generation.

Article 4 – Authority of Application

• Law 7299 designates the Vice Ministry of Mines and Energy as the new authority of application, replacing the National Council of Independent Energy Production and Transport (CONAPTIE).

Article 5 – License

• Under the new wording, Licenses will be granted to projects using natural gas and Minor Hydroelectric Generation. Previously, Licenses were granted to projects that included wind, solar, biomass energy, among other forms of unconventional energy.

Article 12 – Public biddig

• Hydraulic Electric Generation projects with plants of more than 50MW will be awarded through public tender. For projects proposed through private initiatives, the application must be submitted directly to the Authority of Application, indicating whether the energy generation is for export or the domestic market. If the energy is for export, ANDE will have a preferential purchase option.

Article 26 – Fees

• A 1% fee will be applied to transactions carried out by both the Licensee and the awardee of a Hydraulic Electric Generation contract.
• A fee of 100 minimum daily wages (approximately US$ 1,500) is introduced for License applicants and 500 minimum daily wages (approximately US$ 7,400) for the application of Hydraulic Electric Generation contract tenders.
• PTIEE promoters of hydroelectric projects must pay the royalty for the use of hydraulic resources according to Law No. 3239/2007 'On the Water Resources of Paraguay'.
• A 0.50% fee is established on the transactions of the Licensees or Awardees, presenting a sworn declaration of annual income.

Article 33 – Dispute Resolution

• Law 7299 stipulates that disputes arising from contracts under Law 3009/2006 will be resolved by the civil and commercial courts of the Capital of the Republic of Paraguay. Previously, article 33 provided for arbitration under the Conciliation and Arbitration Rules of the International Chamber of Commerce in Paris.