. Energy News .

Argentina blocks Paraguay power sales
by Staff Writers
Buenos Aires (UPI) Jul 12, 2011

disclaimer: image is for illustration purposes only

Argentine demands for more lucrative terms are threatening to scuttle landlocked Paraguay's power sales to Uruguay, a significant source of revenue for the impoverished government in Asuncion.

It's the latest twist in Argentina's frequent quarrels with Paraguay and follows disputes over transshipped trade merchandise and immigration.

Paraguay last year recorded 14.5 percent growth in its gross domestic product, the highest in South America, but is hamstrung by a huge informal sector and high poverty rates among the country's overwhelming Mestizo population.

The power dispute called into question President Fernando Lugo's pledge to secure for Paraguay "energy sovereignty"-- a reference of complex power grid sharing arrangements with Argentina and Brazil, with whom it jointly operates two hydroelectric complexes in the country. Paraguay says the power grid sharing agreements don't reflect market realities.

Paraguayan officials said they were thwarted in their attempt to export surplus power to Uruguay because of unreasonable demands from Buenos Aires. Lugo's top aides met in an emergency session to discuss how to resolve the crisis, which is affecting the nation's revenue.

They said Argentina promised a positive reply at the end of May to coincide with the bicentennial of Paraguay's independence but had come up with more demands.

"Argentina has come up with demands linked to what we can describe as the toll and some other compensation which originally were not considered in the negotiations," Paraguayan Deputy Minister for Mines and Energy Emilio Buongermini said.

He said Paraguay offered to pay Argentina $10 per megawatt per hour for the use of its transmission grid for the power export to Uruguay but the offer wasn't accepted by Argentine President Cristina Fernandez.

"This is the going rate in the region and we don't see why Paraguay should pay more," Buongermini said.

Meanwhile, the planned export of surplus power to Uruguay remains suspended.

Paraguay also faced Argentine demands the surplus power didn't violate current power sharing agreements.

Argentina demanded and received assurances that the power sold to Uruguay wouldn't originate in the shared Paraguay-Argentina Yacyreta Dam complex.

Paraguay has promised and given evidence that the power would originate in its Acaray hydroelectric dam, which isn't shared with either Argentina or Brazil.

"Obviously it is difficult to identify the origin of the power, when you turn the light on you don't have a clue where the power comes from -- Yacyreta or Itaipu," Buongermini said, citing Paraguay's other major dam, which is shared with Brazil.

Paraguay has been trying to increase its foreign exchange earnings from the surplus power generated at the Yacyreta and Itaipu dams.

Lugo and his aides have been unhappy with the controlled prices, which they say are well below current market rates, which Paraguay can charge under contracts with neighbors Brazil and Argentina.

Related Links

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Industry unhappy with Australia's pollution tax
Sydney (AFP) July 11, 2011
Airlines, miners and industry launched a furious attack on Australia's bold new tax on carbon emissions Monday, as Prime Minister Julia Gillard began selling the levy to sceptical voters. Business leaders warned the tax on the nation's 500 biggest polluters would not only cost taxpayers billions and force major industry to slash production and jobs, but would fail to reduce global carbon emi ... read more

Argentina blocks Paraguay power sales

Industry unhappy with Australia's pollution tax

Australia sets carbon price to fight climate change

Group: EU carbon permits should be cut

Philippines says China sea claim shaky

University of Kentucky-led research could be path to new energy sources

China orders US oil giant to halt rigs after spill

China suspends ConocoPhillips operations

New wind turbines said more efficient

Wind power numbers down in Britain

Wind farm inquiry balanced and reasonable

Power-One Inverters Chosen to Power WindTronics

Enecsys announces UL 1741 certification for single and Duo micro

Energy Insights and ASES Create Online Photovoltaic Research Panel

Solar Frontier Ships 150 Watt CIS Modules Globally

North Carolina Solar Center Expands Testing Capabilities With Donated Solar Array

Japan PM urges nuclear-free future

Japan PM to outline nuclear phase-down plan

Japan says reactor 'stress tests' in two phases

Japan still needs nuclear power: Tokyo governor

Biofilters reduce carbon footprint of old landfill sites

Filters seen as greenhouse gas weapon

Grasses eyed as ethanol source

Hot springs microbe yields heat-tolerant enzyme

China launches experimental satellite

China to launch an experimental satellite in coming days

China to launch new communication satellite

China's second moon orbiter Chang'e-2 goes to outer space

Global warming: Cities, too, are carbon 'sinks'

US pledges $5 million for drought-hit Somalis

Australia begins selling disputed pollution tax

Australia sets carbon tax to fight climate change

Memory Foam Mattress Review
Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement