News · 19/07/22
ANDE and Penguin Infrastructure sign 100 MW energy supply contract in Paraguay
Paraguay's national utility ANDE and Penguin Infrastructure S.A. have signed a 100 MW high-voltage supply contract for a data center in Hernandarias, the first major energy allocation behind Penguin's build-out near the Itaipu Dam.
Hernandarias, Alto Paraná — July 19, 2022. The Administración Nacional de Electricidad (ANDE), Paraguay’s national electricity utility, and Penguin Infrastructure S.A. have signed a contract for the supply of energy to a data center in Hernandarias, Alto Paraná. The agreement secures 100 MW of high-voltage power, delivered at 220,000 volts. It ranks among the largest single energy allocations to a private project in the country.
The energy will be delivered at the Parque Industrial Hernandarias (PIH) substation, with supply scheduled to begin on February 1, 2023.
Terms of the agreement
- 100 MW contracted at high voltage (220 kV)
- Delivery at the Parque Industrial Hernandarias (PIH) substation
- Supply commencing February 1, 2023
- 5% modulation during the peak-load hours of the National Interconnected System (SIN), Monday through Saturday, for four consecutive hours
- Tariff applied in accordance with Decree No. 7551 of August 8, 2017
The modulation clause, which reduces draw during the system’s peak hours, points to an operating model designed to add load without straining the national grid. It lets Penguin put Paraguay’s surplus hydroelectric generation to use while preserving stability for other users.
A great leap for Paraguay
“We are confident that Paraguay and its people can take a great leap forward and stand out in the 21st-century economy.”
— Björn Schmidtke, Chairman of the Board, Penguin Infrastructure S.A.
The contract was signed by ANDE President Félix Sosa and Penguin Infrastructure’s leadership, marking a milestone in attracting industrial-scale, energy-intensive investment to Alto Paraná.
Why it matters
Paraguay generates a large surplus of clean hydroelectric energy each year, much of it from the 14 GW Itaipu Dam on the border with Brazil, the world’s second-largest hydroelectric dam by annual production. By placing demand at the source of that surplus, projects like Penguin’s turn energy that would otherwise go unused into economic value, and they do so without costly new transmission lines.
This 100 MW allocation became the foundation of Penguin’s industrial-scale build-out. The international partnerships that followed were built on top of it.
About Penguin
Penguin develops and operates industrial-scale digital infrastructure in Paraguay, transforming the country’s abundant renewable energy into human potential. Penguin’s flagship site near the Itaipu Dam is powered entirely by 100% renewable hydroelectric energy.
Contract details and quotes in this article are drawn from the announcement published by ANDE on July 22, 2022.
