Paraguay · Economy

The energy sector will need roughly US$11 billion over the next 13 to 15 years. And the government wants a dedicated ministry to help attract it.

Paraguay mining and energy policy may soon get its own seat at the cabinet table. On August 13, 2026, President Santiago Peña’s government unveiled a plan to create a full Ministry of Mines and Energy.

The goal is to help draw the roughly US$11 billion the energy sector is expected to need over the next 13 to 15 years.

What the government is proposing

The plan rests on two draft bills. One would create a Ministry of Mines and Energy, and the other would set up an independent regulator for the electricity market.

Officials unveiled both at the first meeting of the National Electricity Sector Board, held at the presidential residence. Because the sector has grown fast, the government argues it now needs a dedicated home in the cabinet.

The US$11 billion figure, explained

The headline number needs care. The government estimates the energy sector will need about US$11 billion over the next 13 to 15 years to keep the lights on and expand.

That is a projection of what is required, not money already pledged. Still, it signals the scale of spending Paraguay believes it must unlock to avoid future shortfalls.

Why Paraguay is acting now

Paraguay runs almost entirely on hydropower, much of it from the giant Itaipú and Yacyretá dams. For decades that gave the country cheap, clean and abundant electricity.

Yet demand is climbing fast, driven by industry, data centers and rising consumption. As a result, officials warn the country could use up its spare capacity around 2030 unless it builds new generation.

From vice ministry to full ministry

Today, energy and mining policy lives inside the Vice Ministry of Mines and Energy. That office sits under the Ministry of Public Works and Communications, far from the center of decision-making.

The new plan would lift that mandate out and give it cabinet rank. In short, a junior office would become a full ministry with its own minister and budget.

What Paraguay mining could add

Energy is the immediate driver, but mining is part of the pitch. Paraguay sits on largely untapped deposits of titanium, uranium, rare earths and other minerals.

For example, its titanium reserves alone could require initial investment above US$1.5 billion, by some estimates. Because these projects are separate from the energy plan, they are not counted inside the US$11 billion figure.

A new electricity regulator

The second bill is just as important as the first. It would create an independent watchdog for the power sector, something Paraguay has long lacked.

A regulator would set clearer rules on tariffs and market access. That matters because private investors tend to want legal certainty before committing to long-lived power projects.

Who is driving the plan

President Peña has put himself at the front of the effort. He chaired the sector meeting where the two bills were presented.

Presidency spokesman Guillermo Grance laid out the next steps to the public. Meanwhile, Mauricio Bejarano, the current Vice Minister of Mines and Energy, remains the sector’s key technical voice.

The road through Congress

The bills are not law yet, and the path is deliberately slow. First, the government will post both drafts online so specialists, unions and citizens can study and debate them.

Only after that public comment will the Executive send the texts to Congress. Therefore, any new ministry is still months away, at best.

The money already flowing

To grasp the gap, look at current spending. Paraguay’s state power company ANDE has a master plan that calls for around US$700 million a year in investment.

In practice, though, annual spending has hovered closer to US$300 million. So the reform is partly about closing that gap between what is planned and what is actually built.

What it means for the region

Paraguay’s cheap, clean power has already lured energy-hungry industries, including bitcoin miners and data centers. A stronger institutional setup could widen that appeal.

For now, the reform is a statement of intent rather than a done deal. Even so, it shows how seriously Asunción is taking the coming squeeze on its once-abundant electricity.

Frequently Asked Questions

What is Paraguay proposing?

On August 13, 2026, President Santiago Peña’s government presented two draft bills: one to create a Ministry of Mines and Energy with cabinet rank. And another to establish an independent regulator for the electricity sector.

Is the US$11 billion committed?

No. It is the government’s projection of how much investment the energy sector will need over the next 13 to 15 years. It is not pledged money, and it covers electricity rather than a specific mining package.

How does this change Paraguay mining oversight?

Energy and mining policy currently sits in the Vice Ministry of Mines and Energy under the Ministry of Public Works. The plan would elevate that mandate into a stand-alone ministry with its own minister.

When could the ministry exist?

Not soon. The bills will first be posted online for public comment, then sent to Congress.

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