Countries › Paraguay › Guide › 12. Sectors › Energy, mining and key sectors in Paraguay: ANDE's monopoly, independent power, renewables, mining royalties, oil and gas and crypto mining
Energy, mining and key sectors in Paraguay: ANDE's monopoly, independent power, renewables, mining royalties, oil and gas and crypto mining
Last verified: 2026-10-28 · Status: Changing
Paraguay's sector rules are built around cheap hydro power: ANDE, the state utility, holds the exclusive right to supply electricity to the public, so private generators sell to ANDE, generate for their own use or export under special laws. Gas fired and small hydro plants need an MOPC licence and pay 1 percent of transactions plus a 0.5 percent water canon under Ley 3009 as rewritten in 2024; solar, wind and other non hydro renewables above 1 MW need a licence of up to 15 years under Ley 6977/2023, and plants below 1 MW only register. Minerals and hydrocarbons belong to the State: mining exploitation concessions and oil and gas concessions are granted by law of Congress, mining pays a royalty of 2 to 8.40 percent of quarterly net income and crude oil 10 to 14 percent of gross output, and since July 2024 stealing power for crypto mining carries up to ten years in prison.
USD figures use PYG 5,847.90 per US dollar, the Banco Central del Paraguay reference quotation for 27 October 2026 (latest published planilla on the verification date). Fees in daily minimum wages use the jornal of PYG 117,077 in force since 1 July 2026 as applied in the DNM fee table. Conversions are for orientation only; mining and oil canons are set in US dollars by law.
Key facts
| Public electricity supply | ANDE exclusive (delegable by contract approved by Congress) Ley 966/1964 art. 64 and 66, as of 2026-10-28 · in force |
|---|---|
| ANDE tariffs set to yield annual net income of | 8 to 10 % of fixed investmentLey 966/1964 art. 88, as of 2026-10-28 · in force |
| Hydro plants awarded by international public tender above | 50 MWLey 3009/2006 art. 12 as amended by Ley 7299/2024, as of 2026-10-28 · in force |
| MOPC fee on licensee and hydro contract transactions | 1 %Ley 3009/2006 art. 26 as amended by Ley 7299/2024, as of 2026-10-28 · in force |
| Water use canon on hydro licensee transactions | 0.5 %Ley 3009/2006 art. 26 as amended by Ley 7299/2024, as of 2026-10-28 · in force |
| Licence application fee | 100 daily minimum wagesLey 3009/2006 art. 26 as amended by Ley 7299/2024, as of 2026-10-28 · in force |
| Maximum term before hydro works revert to the State | 30 yearsLey 3009/2006 art. 13 as amended by Ley 7299/2024, as of 2026-10-28 · in force |
| Non hydro renewable projects needing an ERNC licence (registration only below) | above 1 MWLey 6977/2023 art. 8 and 10, as of 2026-10-28 · in force |
| Maximum ERNC licence term (renewable) | 15 yearsLey 6977/2023 art. 8, as of 2026-10-28 · in force |
| Maximum ANDE purchase contract with ERNC generators | 15 yearsLey 6977/2023 art. 24, as of 2026-10-28 · in force |
| Mining royalty, lowest rate on quarterly net income | 2 %Ley 3180/2007 art. 65 as amended by Ley 4935/2013, as of 2026-10-28 · in force |
| Mining royalty, top rate on quarterly net income | 8.40 %Ley 3180/2007 art. 65 as amended by Ley 4935/2013, as of 2026-10-28 · in force |
| Annual canon, metallic exploitation concession | 2.5 USD per hectareLey 3180/2007 art. 45 as amended by Ley 4269/2011, as of 2026-10-28 · in force |
| Exploitation concession term from start of production (plus 10 automatic for non gold) | 20 yearsLey 3180/2007 art. 35 as amended by Ley 4935/2013, as of 2026-10-28 · in force |
| Exploitation concessions granted by | Congress, by law, after contract approved by decree Ley 3180/2007 art. 33 and 59 as amended by Ley 4935/2013, as of 2026-10-28 · in force |
| Crude oil royalty, 100 to 5,000 barrels a day | 10 %Ley 779/1995 art. 43, as of 2026-10-28 · in force |
| Crude oil royalty, 5,001 to 50,000 barrels a day | 12 %Ley 779/1995 art. 43, as of 2026-10-28 · in force |
| Crude oil royalty, above 50,000 barrels a day | 14 %Ley 779/1995 art. 43, as of 2026-10-28 · in force |
| Royalty on compressed or liquefied gaseous hydrocarbons | 12 %Ley 779/1995 art. 43, as of 2026-10-28 · in force |
| Hydrocarbon exploitation concession term (extendable up to 10) | 20 yearsLey 779/1995 art. 31, as of 2026-10-28 · in force |
| Maximum prison for electricity theft at medium voltage or for crypto mining | 10 yearsCódigo Penal art. 173 as amended by Ley 7300/2024, as of 2026-10-28 · in force |
| Electricity link with Argentina | Yacyretá binational entity, energy split in equal shares Ley 433/1973, Yacyretá Treaty art. XIII, as of 2026-10-28 · in force |
The rule
Cost to do it: No licence fee in the charter; the cost for a business is ANDE's approved tariff schedule (pliego tarifario) for its supply.
Example: A plant that wants to buy power directly from a private solar farm next door cannot do so through the public grid; the solar farm must sell its output to ANDE or the local concessionaire. / A US$5 million data centre project budgets its power at the ANDE tariff for its voltage level, not at a negotiated bilateral price.Ley Nº 966/1964, crea la ANDE y establece su Carta Orgánica, Art. 2, 5, 64, 66, 84 and 88, 1964-08-12 official text · verified 2026-10-28
Cost to do it: Licence application 100 daily minimum wages, PYG 11,707,700 (about US$2,002); hydro tender application 500 daily minimum wages, PYG 58,538,500 (about US$10,010); then 1 percent of transactions plus a 0.5 percent water canon each year.
Example: A 30 MW small hydro plant with annual sales of PYG 58,479,000,000 pays PYG 584,790,000 in MOPC fees and PYG 292,395,000 in water canon, besides income tax. / On US$10 million of annual sales the plant pays US$100,000 (1 percent) plus US$50,000 (0.5 percent), a combined US$150,000 before tax.Ley Nº 3009/2006, de la Producción y Transporte Independiente de Energía Eléctrica (PTIEE), as amended by Ley Nº 7299/2024, Art. 3, 4, 5, 12, 13, 26, 28, 30, 31, 32 and 33 (text of Ley 7299/2024 art. 1), 2024-08-02 official text · verified 2026-10-28 · changed: Ley Nº 7299/2024, promulgated on 2 August 2024 and published on 5 August 2024, rewrote articles 3, 4, 5, 12, 13, 23 to 26, 28 and 30 to 34 of Ley 3009/2006 (promulgated 28 September 2006): the MOPC became the application authority, hydro above 50 MW moved to international tenders with an ANDE purchase option for export projects, the 0.5 percent water canon and its split were added, and licences and contracts were declared irrevocable.
Cost to do it: Connection and grid reinforcement works are paid by the generator; up to half of reinforcement cost comes back as bill discounts. No licence fee is set in the law itself.
Example: A factory installs 900 kW of rooftop solar: it only registers, injects surplus to ANDE and receives bill credits at the ERNC reference tariff; a PYG 584,790,000 grid reinforcement can be recovered up to PYG 292,395,000 through 20 percent bill discounts over two years. / On US$100,000 of reinforcement works, at most US$50,000 returns as discounts within two years; anything not used by then stays with ANDE.Ley Nº 6977/2023, regula el fomento, generación, producción, desarrollo y utilización de energía eléctrica a partir de fuentes de energías renovables no convencionales no hidráulicas, Art. 4, 5, 7, 8, 10 to 13, 15, 23, 24, 27, 29, 30 and 33, 2023-01-26 official text · verified 2026-10-28
Cost to do it: No fee in the law; the condition is to spend 15 percent of the investment within one year of approval.
Example: For an approved PYG 29,239,500,000 solar plant, at least PYG 4,385,925,000 must be spent within the first year to keep the incentives. / For a US$5 million plant, US$750,000 must be committed in year one.Ley Nº 6977/2023 and Ley Nº 7548/2025, nuevo régimen de incentivos fiscales para la inversión nacional y extranjera, Ley 6977 art. 35, 36 and 37; Ley 7548 art. 34, 2025-09-08 official text · verified 2026-10-28 · changed: Ley 7548/2025, promulgated and published on 8 September 2025, repealed Decreto Ley 27/1990 and Ley 60/90 by its art. 34; Ley 6977 art. 37 still points to Ley 60/90.
Cost to do it: Investment plan minimums under art. 41 as amended by Ley 4269: US$1 per hectare a year for metallic prospecting and US$1.50 rising to US$4 per hectare a year in exploration; in exploration and exploitation, a guarantee against all risk in favour of the MOPC under art. 41(d), arranged under the public procurement rules, which is executed if the committed investment is not met.
Example: Exploring 20,000 hectares in year one requires an approved investment plan of at least PYG 175,437,000 (US$1.50 per hectare). / The same 20,000 hectares need a US$30,000 first year exploration plan, backed by the art. 41(d) guarantee in favour of the MOPC.Ley Nº 3180/2007 de Minería, as amended by Ley Nº 4269/2011 and Ley Nº 4935/2013, Ley 3180 art. 1, 10; Ley 4269 art. 1 (new art. 8, 11, 13, 14, 30, 31, 32); Ley 4935 art. 1 (new art. 14, 33, 34, 35 and 59), 2013-05-31 official text · verified 2026-10-28 · changed: Ley 4269/2011 (promulgated 14 July 2011) lengthened exploration to three plus three years and set the 400,000 hectare prospecting cap; Ley 4935/2013 (signed 31 May 2013) made Congress authorisation of concessions revocable only on statutory grounds and set the 20 plus 10 year exploitation term.
Cost to do it: Exploitation canon US$2.5 per hectare a year (metallic); royalty 2 to 8.40 percent of quarterly net income.
Example: A 10,000 hectare metallic exploitation concession pays a canon of PYG 146,197,500 a year; on quarterly net income of PYG 5,847,900,000 the royalty falls between PYG 116,958,000 (2 percent) and PYG 491,223,600 (8.40 percent). / The same concession pays US$25,000 a year in canon; on US$1 million of quarterly net income the royalty is between US$20,000 and US$84,000, deductible for income tax.Ley Nº 3180/2007 de Minería, as amended by Ley Nº 4269/2011 and Ley Nº 4935/2013, Ley 3180 art. 48 and 49; Ley 4269 art. 1 (new art. 42, 45 and 62); Ley 4935 art. 1 (new art. 65, 66 and 67), 2013-05-31 official text · verified 2026-10-28
Cost to do it: Initial canon US$0.30 per hectare; annual canon US$0.20 to US$2.00 per hectare; royalty 10 to 15 percent of gross production.
Example: A 5,000 hectare exploitation lot pays PYG 8,771,850 initial canon and PYG 5,847,900 a year in years 1 to 5; on gross crude worth PYG 58,479,000,000 produced at 3,000 barrels a day the royalty is PYG 5,847,900,000. / The same lot pays US$1,500 initial canon and US$1,000 a year; on US$10 million of gross crude at 3,000 barrels a day the royalty is US$1 million (10 percent).Ley Nº 779/1995, que modifica la Ley Nº 675/60 de Hidrocarburos, and Ley Nº 3119/2006, Ley 779 art. 3 to 6, 13, 14, 15, 31, 41, 42, 43 and 44; Ley 3119 art. 1 and 2, 1995-11-20 official text · verified 2026-10-28
Cost to do it: No fee; a legal crypto mining operation pays ANDE's tariff for its connection.
Example: A mining farm wired directly to an ANDE medium voltage line without a meter faces up to ten years in prison and loss of its machines to ANDE. / Hardware worth US$500,000 seized in such a case can be sold and the proceeds paid to ANDE.Ley Nº 7300/2024, que protege la integridad del sistema eléctrico y modifica el artículo 173 de la Ley Nº 1160/1997 Código Penal, Art. 2, 3 and 4 (new Código Penal art. 173), 2024-07-19 official text · verified 2026-10-28 · changed: Ley 7300/2024, promulgated and published on 19 July 2024, raised the maximum penalty from three to ten years for medium voltage theft and for crypto mining purposes and added seizure in favour of ANDE.
Cost to do it: Not applicable to private investors directly; energy from the dam reaches users through ANDE.
Example: Paraguayan industrial users buy Yacyretá power only indirectly, through ANDE's tariff. / A US$10 million plant cannot contract Yacyretá output directly; it contracts supply with ANDE.Ley Nº 433/1973, aprueba y ratifica el Tratado de Yacyretá entre la República del Paraguay y la República Argentina (signed 3 December 1973), Treaty art. III, IV and XIII, 1973-12-28 official text · verified 2026-10-28
| Sector | Who grants | Term | Main state take |
|---|---|---|---|
| Public power supply | ANDE monopoly; delegation by contract approved by Congress | Unlimited (ANDE) | Tariffs targeting 8 to 10 percent return on ANDE investment |
| Gas fired and small hydro up to 50 MW | MOPC licence | Per licence contract | 1 percent of transactions plus 0.5 percent water canon (hydro); application 100 daily wages, PYG 11,707,700, about US$2,002 |
| Hydro above 50 MW | International public tender, MOPC | Reversion within 30 years | Same 1 plus 0.5 percent; tender application 500 daily wages, PYG 58,538,500, about US$10,010 |
| Solar, wind, biomass, green hydrogen above 1 MW | MOPC ERNC licence | Up to 15 years, renewable | Transmission toll for exporters; no royalty in Ley 6977 |
| Metallic mining | MOPC permits; exploitation by law of Congress | Prospecting 1 plus 1, exploration 3 plus 3, exploitation 20 plus 10 (non gold) | Canon US$2.5 per hectare; royalty 2 to 8.40 percent of quarterly net income |
| Oil and gas | Concession by law of Congress | Exploration 4 plus 2, exploitation 20 plus 10 | Canons US$0.30 initial and US$0.20 to US$2.00 per hectare a year; royalty 10 to 14 percent crude, 12 percent gas |
Main sector regimes at a glance (amounts as set in law; USD at PYG 5,847.90)
Worked example
- Small hydro, 30 MW, US$10 million of annual sales (PYG 58,479,000,000): licence application PYG 11,707,700 (about US$2,002) once; then each year a 1 percent MOPC fee of US$100,000 (PYG 584,790,000) and a 0.5 percent water canon of US$50,000 (PYG 292,395,000), a combined 1.5 percent or US$150,000 before income tax.
- Metallic mine, 10,000 hectare exploitation concession: canon US$25,000 a year (PYG 146,197,500). With quarterly net income of US$1 million (PYG 5,847,900,000), the royalty is at least US$20,000 (2 percent) and at most US$84,000 (8.40 percent) per quarter, paid within 30 days of quarter end and deductible for income tax.
- Oil field producing 3,000 barrels a day with gross crude worth US$10 million (PYG 58,479,000,000) in a year: royalty 10 percent, US$1 million (PYG 5,847,900,000), paid in US dollars within 10 days of the liquidation, plus annual canon of US$0.20 per hectare in years 1 to 5.
Step by step
- Choose the legal route for power: own use or surplus to ANDE (register if up to 1 MW renewable, licence above 1 MW), sale to ANDE through an ANDE tender, small hydro or gas licence under Ley 3009, or export under Ley 6977 or Ley 3009.
- Incorporate locally first: Ley 3009 licensees must be domiciled in Paraguay, Ley 779 applicants need a domicile and resident representative, and foreign mining rights holders need a domicile or resident representative.
- File with the MOPC Viceministerio de Minas y Energía: licence application (100 daily wages for Ley 3009 licences), ERNC licence or registration, or the mining prospecting permit; for mining the MOPC answers within 60 calendar days and the canon is due within 20 business days of acceptance.
- Secure environmental approval in parallel; mining prospecting and exploration permits are granted only on proof of compliance with environmental law (Ley 3180 art. 30 to 32 as amended by Ley 4269).
- For mining exploitation or hydrocarbon concessions, negotiate the contract with the Executive, which approves it by decree and sends it to Congress; budget months for a law to pass.
- For exports of renewable power, file the transport capacity request through the MOPC before 1 July, sign the ANDE transport contract after the licence and file the apostilled Spanish export contract within 10 business days of signing.
- Diarise recurring payments: mining royalty within 30 days of each quarter end, Ley 3009 fees on the annual balance sworn statement, hydrocarbon royalty within 10 days of each liquidation.
Common traps
- No direct retail sales: ANDE's exclusivity under Ley 966 art. 64 means a private generator cannot supply third party customers over the public grid; ERNC self generators and cogenerators can sell only to ANDE or the local concessionaire.
- Above 1 MW of injected power, ANDE is not obliged to take ERNC surplus; the excess over 1 MW is taken only if ANDE needs it (Ley 6977 art. 12 and 18).
- Ley 6977 art. 37 grants incentives by reference to Ley 60/90, which Ley 7548/2025 art. 34 repealed; confirm with the MOPC and the Ministry of Industry which regime applies before modelling exemptions.
- Ley 3009 disputes go to the courts of Asunción (art. 33), not to arbitration, unless a separate stability agreement under art. 31 says otherwise.
- Mining exploitation needs a law of Congress: an MOPC exploration permit does not guarantee the concession, and art. 33 makes the congressional authorisation revocable only on statutory grounds once given.
- Late or missing canon payments are a forfeiture ground for mining rights, and the 60 day cure period of art. 63 does not cover canon payments under art. 42.
- Do not model the 30 percent income tax rate in Ley 779 art. 49: Ley 3119/2006 art. 2 sends that article to the general income tax rule of Ley 2421/2004 art. 20, so check the current income tax treatment with a tax adviser.
- Crypto mining is lawful only with a regular ANDE connection; any irregular connection or meter tampering for crypto mining is punishable by up to ten years in prison regardless of voltage level, and equipment is seized.
Sources
- Ley 966/1964, ANDE charter (BACN)
- Ley 3009/2006, PTIEE (BACN)
- Ley 7299/2024, amends Ley 3009 (BACN)
- Ley 6977/2023, non hydro renewables (BACN)
- Ley 7548/2025, new incentive regime (BACN)
- Ley 3180/2007, mining law (BACN)
- Ley 3180/2007, mining law original text (MOPC)
- Ley 4269/2011, amends mining law (BACN)
- Ley 4935/2013, amends mining law (MOPC Viceministerio de Minas y Energía)
- Ley 779/1995, hydrocarbons (BACN)
- Ley 3119/2006, hydrocarbons articles in force (BACN)
- Ley 7300/2024, power theft and crypto mining (BACN)
- Ley 433/1973, Yacyretá Treaty (BACN)
- Banco Central del Paraguay, exchange rate planilla
- Dirección Nacional de Migraciones, fee table with the 2026 jornal
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