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Characteristics of the Country

Characteristics of the Country. The Republic of Paraguay is located in the center of South America That’s why is named “The Heart of South America”. Brazil. Bolivia. Argentina. The Republic of Paraguay is surrounded by the countries of Brazil, Bolivia and Argentina.

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Characteristics of the Country

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  1. Characteristics of the Country

  2. The Republic of Paraguay is located in the center of South America That’s why is named “The Heart of South America”

  3. Brazil Bolivia Argentina • The Republic of Paraguay is surrounded by the countries of Brazil, Bolivia and Argentina.

  4. The Republic of Paraguay has two natural regions: The Eastern Region and the Western Region known as Grand Chaco. Western Eastern

  5. The country is divided politically by 17 departments. • The Capital is Asunción. • Land Area: 406.752 Km2 • Population: 5.742.006 Inh. Asunción

  6. Density 13,8 hab./ km2 • Languages: Spanish / Guaraní • Money: Guaraní (Gs.) 1US$= 6220 Gs. (Mar. 2005) • PIB: US$ 5.531 millones

  7. GEOGRAPHICALLOCATION •  Located in the Center of MERCOSUR. • The smallest land distances to capitals of MERCOSUR countries and mayor production areas. FLIGHT HOURS FROM ASUNCION

  8. The principal bi-oceanic corridors between the Pacific and the Atlantic Ocean are crossing through Paraguay.

  9. ENERGY In PARAGUAY

  10. OVERVIEW • ParaguayParaguay has no known oil or natural gas reserves but is a major producer and exporter of hydroelectric power. Paraguay is a member of MERCOSUR, the Southern Cone Common Market. BACKGROUNDThe Republic of Paraguay is extensively integrated with the economies of its neighboring MERCOSUR members—Brazil, Argentina, and Uruguay. Paraguay has vast hydropower potential, with two large hydroelectric plants—Itaipu, one of the largest in the world, and Yacyreta. • Paraguay’s economy depends heavily on agriculture, hydroelectricity generation, and trade with its neighboring countries. Accordingly, Paraguay is highly sensitive to regional trends. OILWith no crude oil reserves, Paraguay relies entirely on imports to meet its crude oil and petroleum products demand, which averaged around 25,000 barrels per day (bbl/d) in 2003. State-owned oil company, Petroleos Paraguayos (Petropar), is responsible for handling all crude oil and petroleum product imports, and regularly holds bidding rounds for oil supply contracts. In September 2004, for example, Petropar awarded Repsol-YPF (Spain), Petrobras (Brazil), and Glencore (Switzerland) contracts to supply oil and petroleum products through January 2005. The company also operates Paraguay's sole refinery, the 7,500-bbl/d Villa Elisa.

  11. NATURAL GAS Although Paraguay neither consumes nor produces natural gas, the country has been looking for ways to include natural gas in its energy mix. A new hydrocarbons law, which could be adopted at the end of 2004, reportedly will contain legislation aimed at promoting the use of natural gas. One of the main drivers behind this initiative has been the government’s desire to decrease Paraguay’s consumption of firewood and charcoal, the use of which has contributed to deforestation. • Previous attempts to develop a natural gas sector in Paraguay have not been successful. In December 2002, the Bolivian and Paraguayan governments signed a preliminary agreement allowing for the construction of a pipeline extending from southern Bolivia to the capital of Paraguay, Asunción. The project also would have included building a 200-megawatt (MW) power plant in western Paraguay and a 750-MW plant near Asunción. Another proposal was the Gas Integration Project (Gasin), proposed by the Brazilian government in December 2001. This project involved constructing a natural gas pipeline linking Bolivia, Argentina, Paraguay and Brazil. To date, neither of these two projects has moved forward, and it seems unlikely that they will be revived, at least in the near term. • In other developments, Paraguay's government announced in September 2004 that it will sign 12 hydrocarbon exploration and production (E&P) concessions, which will expand exploration activities in northwestern Paraguay. Earlier in 2004, UK-based CDS Oil & Gas Group reported that it had successfully completed a production test in the region on the Independencia-1 natural gas well. The well reportedly flowed at a rate of 960,000 cubic feet per day, showing that Paraguay might have the potential to become a natural gas producer if more natural gas is discovered. Companies that reportedly will sign E&P concessions with Paraguay's government include H.A & E.R. Exploraciones, Pilcomayo Petróleos S.A., Hidroener Consultora, Guaraní Exploration, Union Oil, Paraguay Gas, Boreal Petróleos, Aurora Petróleos and Amerisur.

  12. ELECTRICITYIn 2002, Paraguay consumed 2.5 billion kilowatthours (Bkwh) of electricity, the fourth lowest level of power consumption in South America. Paraguay generates nearly all its electricity from one hydropower plant, Itaipu, which provides about 94% of Paraguay's relatively small electricity demand. The Yacyreta and Acaray hydropower plants, as well as six small thermal-fired plants, supply the remainder of the Paraguay’s power demand. • Although Paraguay consumes a relatively small amount of electricity, the country ranks as the fourth largest electricity producer in South America, behind Brazil, Venezuela and Argentina. In 2002, Paraguay generated 48.4 Bkwh, of which 95% was exported, mainly to Brazil. In 2002, Paraguay’s net electricity exports of 45.9 Bkwh were the second largest in the world, behind only France. HYDROELECTRICITY • Itaipu, the world's largest operating hydroelectric dam, began initial operations in May 1984. The dam has a total installed capacity of 12.6 gigawatts (GW), which will increase to 14.0 GW once two new turbines are installed. The plant is jointly owned and operated by Paraguay and Brazil, which evenly share the electricity generated there. Paraguay exports most of its electricity from Itaipu to Brazil. • Paraguay's other major hydropower plant, Yacyreta, is equipped with 20 turbines and has an installed capacity of 3,200 MW. Paraguay and co-owner Argentina share the electricity generated at Yacyreta evenly, with most of Paraguay's share being exported to Argentina. Despite completion in 1999, Yacyreta is reportedly generating at only 60% of its capacity. The dam project was designed to have a reservoir 83 meters above sea level, but it currently is operating with a reservoir 76 meters above sea level. In April 2004, the Argentine and Paraguayan governments pledged to complete the dam, raising the reservoir to the 83-meter stage by 2007. Financial problems and corruption have reportedly hindered completion of the hydropower plant.

  13. Hydraulic Generation

  14. By the end of the 1970s, the hydroelectric generation plant of Acaray in Paraguay started operation in interconnection with the Province of Misiones in Argentina and the State of Parana in Brazil. There followed bi-national hydroelectric projects: Salto Grande (Argentina-Uruguay), Itaipú (Brasil-Paraguay) and Yacyreta (Argentina-Paraguay). In recent years, power interconnections have been implemented between Argentina and Brasil, and Uruguay and Brasil. Thus physical conditions have been created for electricity exchange between these countries. Energy Integration

  15. Electric Energy in Paraguay Itaipu • Número de Unidades: 18 generadores, cada uno con una capacidad nominal de 700 MW (9 pertenecen al Paraguay y los demás 9 al Brasil).Potencia Disponible: 6300 MW para el Paraguay.Estado Actual: en operación. Acaray • Número de Unidades: 4 generadores, cada uno con una capacidad nominal de 50 MW (Acaray pertenece a la ANDE).Potencia Disponible: 200 MWEstado Actual: en operación. Actualmente se llevan a cabo trabajos de restauración y modernización de los equipos principales. Yacyretá • Número de Unidades: 20 generadores, cada uno con una capacidad nominal de 175 MW (10 pertenecen al Paraguay y los demás a la Argentina).Potencia Disponible: 1750 MW para el Paraguay.Estado Actual: 20 unidades operando con cota reducida (100 MW cada una). • Además de la generación hidráulica mencionada, la ANDE cuenta con los siguientes grupos de generación térmica: • San Carlos (0,08 MW) • Bahía Negra (0,28 MW) • La Patria (0,28 MW) • Mcal. Estigarribia (1,36 MW) • Pedro J. Caballero (2,8 MW) • Sajonia (33,7 MW)

  16. Yacyreta • La energía hidroeléctrica que se puede obtener en una zona depende de los cauces de agua y desniveles que tenga, y existe, por tanto, una cantidad máxima de energía que podemos obtener por este procedimiento. Se calcula que si se explotara toda la energía hidroeléctrica que el mundo entero puede dar, sólo se cubriría el 15% de la energía total que consumimos. • A través de cada turbina pueden pasar 2.630 millones de litros de agua por hora, o sea que, por las 20 turbinas de Yacyretá puede pasar por hora el equivalente al consumo de agua potable de 13 días de la ciudad de Asunción o de 2 días de la ciudad de Buenos Aires.  • La energía que se puede producir anualmente es de 19.000 Gwh equivalente al 65% de la generación eléctrica de Paraguay y la Argentina.   • Cada turbogenerador pesa aproximadamente 1.000 toneladas, tanto como 1.000 autos medianos. • Las turbinas responden a la denominación de Kaplan. Los generadores son del tipo eje vertical totalmente cerrados, enfriados por aire mediante intercambiadores de calor aire - agua. Las energía generada se transmite a los transformadores por medio de barras blindadas de fases aisladas.  • La transmisión de energía obtenida a ambos territorios se concreta mediante la construcción de estaciones transformadoras, que posibilita la conexión de la línea de salida de la Central, con los sistemas adoptados por ambos países.   • POTENCIA Y GENERACIÓN • A principios de la década de los noventa, las primeras potencias productoras de hidroelectricidad eran Canadá y Estados Unidos. Canadá obtiene un 60% de su electricidad de centrales hidráulicas. Los países en los que la energía hidroeléctrica constituye fuente de electricidad más importante son Noruega (99%), Zaire (97%) y Brasil (96%). La central de Itaipú, en el río Paraná, está situada entre Brasil y Paraguay; se inauguró en 1982 y tiene la mayor capacidad generadora del mundo. . • En algunos países se han instalado centrales pequeñas, con capacidad para generar entre un kilovatio y un megavatio. En muchas regiones de China, por ejemplo, estas pequeñas presas son la principal fuente de electricidad. Otras naciones en vías de desarrollo están utilizando este sistema con buenos resultados.

  17. La energía de Yacyretá se deriva al sistema argentino a través de 3 líneas de 500 kV, que vinculan la Central con el punto de entrega en la estación Rincón de Santa María, muy cerca de Ituzaingó, y al sistema paraguayo mediante una línea de 220 kV, hasta la subestación Ayolas.

  18. Itaipu

  19. Transmission System • 50 HZ Sector • Itaipu - Right Bank Substation (500 kV) • 22 circuits, each close to 2 km in length • Left Bank Substation - Foz do Iguaçu (500 kV) • 2 circuits, each close to 9 km in length • Itaipu - Foz do Iguaçu Substation (500 kV) • 2 circuits, each close to 11 km in length • 60 Hz Sector • Itaipu - Foz do Iguaçu Substation (500 kV) • 4 circuits, each close to 8 km in length

  20. There is no other hydroelectric power plant in the world with the size of the Itaipu Power Plant. With its installed power of 12,600 MW, it is well ahead of the plant classified in second place: Guri, in Venezuela, 10,200 MW. In third place is Grand Coulee, in the United States of America, with 6,500 MW, and in fourth is Sayano Shushenskaya, in Russia, with 6,400 MW installed power. The largest Brazilian power plant, Tucuruí, in Pará, has an installed power of 4,200 MW. Grandiose numbers See some numbers on Itaipu, which give an idea of the scale of its grandeur:• The total volume of concrete used in the construction of Itaipu would be sufficient to build 210 football stadiums like the Maracanã, in Rio de Janeiro.• The iron and steel employed would permit building 380 Eiffel Towers.• The maximum flow over the Itaipu spillway (62.2 thousand cubic meters per second) corresponds to 40 times the average flow over the Iguaçu Falls.• The flow through two Itaipu turbines (700 cubic meters of water per second each), corresponds to the total average flow of the Iguaçu Falls (1500 cubic meters per second).• The height of the main dam (196 meters) is equivalent to the height of a 65 storey building.• Brazil would have to burn 434 thousand barrels of petroleum a day to obtain from thermoelectric plants the same energy production as Itaipu.• The volume of earth and rock excavations at Itaipu is 8.5 times greater than that of the Eurotunnel (that links France and England under the English Channel) and the volume of concrete is 15 times greater. Itaipu versus Three Gorges May the Chinese forgive us, but, in spite of the grandeur of the Three Gorges hydroelectric power plant, at present under construction, Itaipu will continue for many years to be the greatest hydro plant in the world regarding the most important feature of a plant of this type: energy production. Even before utilising the two additional generator units, to be installed by 2004, Itaipu already attained the production milestone of 93.4 billion kWh/year, while the forecast for the Three Gorges is 84 billion kWh/year with its 26 machines of 680 MW each - 20 MW less than the Itaipu machines, which have 700 MW each (see in the following comparison chart). In summary, in spite of having less installed power than Three Gorges and with eight fewer generator units, Itaipu has a greater production than that specified in the project of the Chinese hydro plant. This record can only be maintained because Nature is on our side. The flow of the Paraná River is more stable than that of the Yang-tse, where the Three Gorges is being built. As well as this, the waters of our "Great Paraná" are regulated by dozens of power plants located upstream form Itaipu.

  21. Comparisons

  22. ITAIPUGeneration Data • Data from: 08/11/2005 - 05:09:59 • Instant Generation • 9.290 MWh • Acumulated Generation in this year • 74.536.085 MWh • Total Acumulated Generation • 1.287.555.254 MWh

  23. ENERGY SECTOR IN COMMON MARKET GROUP-MERCOSUR • THE CMG IS SUPPORTED BY WORKING SUB-GROUP N° 9 - ENERGY (W-SG) TO DEAL WITH ENERGY SUBJECTS. • THE W-SG N° 9 HAS TECHNICAL REPRESENTATIVES FROM GOVERNMENTAL ENTITIES (ENERGY AGENCIES).

  24. ENERGY SECTOR IN COMMON MARKET GROUP • THE MAIN POLICIES ON ENERGY SECTOR ARE BASED ON TWO MEMORANDA (SIGNED IN 98 &99): • 1- Memorandum of Understanding relative to Electricity Exchanges and Electricity Integration in MERCOSUR. • 2-Memorandum of Understanding relative to Natural Gas Exchanges and Natural Gas Integration in MERCOSUR

  25. The Energy MERCOSUR Memoranda • A) Free access to third parties to remaining capacities of gas pipelines or transmission lines; • B) Non discriminatory treatment for market agents of signatory countries; • C) Prohibition of subsidies of any nature that could generate distortions of competitiveness; • D) Opening of purchase and sale gas and electricity markets of the signatory countries

  26. ANDE

  27. ANDE • Paraguay's state-owned utility, Administración Nacional de Electricidad (ANDE), controls the country’s entire electricity market, including generation, distribution and transmission. Along with deregulating the country’s oil sector, the government is also considering unbundling the vertically integrated ANDE. Previous attempts to privatize ANDE, however, failed, as the government reportedly faced stiff resistance from government employees.

  28. Energy Paraguayan Status • Paraguay is the biggest exporter of electrical energy in Latin America. • Has the lowest cost of industrial electrical energy of Latin America and one of the lowest in the world. • The hydroelectric energy is almost unlimited renewable and it is environmentally friendly. • The installed capacity is approximately 8,000,000 Kw. • The Corpus Hydroelectric Dam is in the proyect with an estimated generation capacity of 6,000,000 Kw. • Paraguay doesn´t have oil. It imports all its oil or derivatives needs.

  29. Energy Efficency and Conservation: Is it a main issue? PLENTY OF ELECTRICAL ENERGY WITH LOW COSTS PLENTY OF HYDROELECTRICAL RESOURCES PLENTY OF NATURAL RESOURCES: Reserves of natural gas, although not yet quantified.

  30. The Main Energy Outlines of the Goverment between 2003 – 2008 are:► Relaunching with Argentina the Hydroeléctric Project CORPUS.  ► Making feasibility studies for Gas Transport trouhg paraguayan an bolivian territory ► Strengh the Mine Sector: encouraging prospection projects of oil, gas, and racional explotation of the subsoil. 

  31. PARAGUAY Thank you

  32. Eng. Federico Ribeiro Email: federicoribeiro@conatel.gov.py Phone: 595-21-442483 Cellphone: 595-971-208094 Asuncion-Paraguay

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