Vouga advises Paracel on cogeneration licence
Vouga Abogados has advised Paracel in its incursion as a cogenerator in the energy sector, having been granted its Definitive Cogeneration Licence by the National Council for Independent Energy Production and Transport (Consejo Nacional de la Producción y Transporte de Energía Independiente).
This transaction marks a milestone in Paraguay, as it is the first energy cogeneration licence granted by the government to a private company.
The consultancy included the drafting and approval of the licence for power generation in Paraguay, as well as the drafting of the necessary contracts and documents.
Subsequently, it is intended to sign a power purchase agreement (PPA) between Paracel and the National Electricity Administration – ANDE, which would mark the first time that the Paraguayan state, through ANDE, would purchase electricity from a private company.
Following this operation, Paracel will produce approximately 220 MW of 100% renewable and clean energy from forest biomass, of which approximately 100 MW will be injected into ANDE within the framework of Law 3009/06.
Paracel will also invest approximately US$3.9 billion in the first pulp mill to be installed in Paraguay. Once the project is completed, Paracel expects to generate more than 40,000 direct and indirect jobs.
Vouga’s team consisted of partner Rodolfo G Vouga (pictured left) and senior associate Manuel Acevedo (pictured right).
