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Analysis of the Energy Sector in Rural Areas of Paraguay

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Analysis of the Energy Sector in Rural Areas of Paraguay Analysis Of the Energy Sector In Rural Areas of Paraguay D E L A P C A I R L A B G U U P A E Y R MINISTERIO DE OBRAS PÚBLICAS Y COMUNICACIONES VICEMINISTERIO DE MINAS Y ENERGÍA Project: Rural Electrification Date: November 2005 The author of this document is Jean-Claude Pulfer, consultant. The opinions expressed in the document are the responsibility of the author and do not bind the sponsoring organizations, "Latin American Energy Organization" (OLADE), "Canadian International Development Agency" (CIDA), "University of Calgary" or the “Ministerio de Obras Públicas y Comunicaciones (MOPC) – Viceministerio de Minas y Energía del Paraguay”. The use the information contained in this document is permitted if the source is cited. The rights to this document are the property of the Rural Electrification Project of OLADE/University of Calgary/CIDA/Viceministerio de Minas y Energía del MOPC de Paraguay. Página 2 de 91 TABLE OF CONTENTS: LIST OF TABLES AND ILLUSTRATIONS:....................................................... 5 ABBREVIATIONS: ............................................................................................ 7 EXECUTIVE SUMMARY: .................................................................................. 9 GENERAL CONTEXT OF THE COUNTRY AND ITS RURAL AREA ............. 12 1.1. The Country and its Political Organization ................................................................................12 1.2. Principal Demographic Data and Ethnic Composition ..............................................................13 1.2.1. Total Population and Rural Population ...................................................................................13 1.2.2. Indigenous Population.............................................................................................................14 1.3. Social and Economic Situation .....................................................................................................15 1.4. Human Development Index and Unsatisfied Basic Needs..........................................................20 1.5. Productive Models in Rural Areas ...............................................................................................21 1.6. Organizational Systems in Rural Areas.......................................................................................21 1.6.1. Introduction .............................................................................................................................21 1.6.2. Neighborhood Commissions ...................................................................................................22 1.6.3. Production Committees ...........................................................................................................23 1.6.4. Peasant Organizations .............................................................................................................23 1.7. Public Services in Rural Areas .....................................................................................................24 1.7.1. Potable Water and Sanitation ..................................................................................................24 1.7.2. Telephone Service ...................................................................................................................25 1.7.3. Electrical Energy.....................................................................................................................26 1.7.4. Highways.................................................................................................................................28 1.7.5. Education.................................................................................................................................28 1.7.6. Health and Social Welfare.......................................................................................................30 1.8. Energy Matrix in Rural Areas......................................................................................................31 1.8.1. Energy Demand of Rural Families ..........................................................................................31 1.8.2. Distribution of Improved Stoves .............................................................................................32 1.8.3. Energy Costs in Rural Areas ...................................................................................................33 2. RURAL DEVELOPMENT ACTIONS....................................................... 34 2.1. Introduction ...................................................................................................................................34 2.2. Agrarian Reform ...........................................................................................................................35 2.3. Rural Electrification......................................................................................................................35 2.3.1. Historical Aspects....................................................................................................................35 2.3.2. Electrification Plans ................................................................................................................36 Página 3 de 91 2.3.3. Self-Help System.....................................................................................................................36 2.3.4. Social Rate...............................................................................................................................38 2.3.5. User Categories and Average Consumption............................................................................38 2.4. Access to Financing........................................................................................................................38 2.5. Rural Industrialization..................................................................................................................39 3. REGULATORY AND INSTITUTIONAL FRAMEWORK FOR RURAL ENERGY .......................................................................................................... 41 3.1. Introduction ...................................................................................................................................41 3.2. Viceministerio de Minas y Energía ..............................................................................................41 3.3. Administración Nacional de Electricidad....................................................................................42 3.4. Entidad Binacional Itaipú.............................................................................................................43 3.5. Entidad Binacional Yacyretá........................................................................................................45 3.6. Private Stakeholders in the Electrical Sector..............................................................................45 3.7. National Forest Service .................................................................................................................46 3.8. Secretaría del Ambiente................................................................................................................48 3.9. Instituto Nacional de Tecnología y Normalización .....................................................................50 3.10. Public Contracts ............................................................................................................................53 4. RURAL ELECTRIFICATION PROGRAMS............................................. 56 4.1. Conventional Electrification .........................................................................................................56 4.1.1. Programs for Rehabilitating the Distribution Infrastructure of Self-Help Systems.................56 4.1.2. Short Term Electrification Plan...............................................................................................56 4.1.3. Electrification of Indigenous Communities.............................................................................57 4.2. Decentralized Electrification of Isolated Communities..............................................................58 4.2.1. Introduction .............................................................................................................................58 4.2.2. Puerto 14 de Mayo, Indigenous Community of Karcha Bahlut...............................................58 4.2.3. Acaray Mi Indigenous Community.........................................................................................59 4.2.4. Electrification of Rural Community Centers...........................................................................60 4.2.5. Sustainable Energy in Isolated Rural Communities for Productive Purposes.........................61 4.3. Renewable Energy Project for Decentralized Rural Electrification .........................................62 4.3.1. Background .............................................................................................................................62 4.3.2. Objetives .................................................................................¡Error! Marcador no definido. 4.3.3. Proposed Activities..................................................................................................................62 4.3.4. Work Method ..........................................................................................................................63 4.3.5. Institutional
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