Binational hydropower operator Itaipu has presented a study examining the integration of 100 MW to 1,000 MW of solar photovoltaic capacity into Paraguay’s electricity system to meet rising demand and improve grid stability.

The research, titled “Use of photovoltaic generation to meet Paraguayan electricity demand and dampen inter-area electromechanical oscillations,” was recently presented by Manuel Sosa Ríos, an engineer in Itaipu’s Technical Directorate, at the Cigre Energy Forum 2026 in Calgary, Canada.

The study draws on forecasts of rising electricity consumption in Paraguay. The country currently has 8,800 MW of hydropower capacity, comprising Itaipu’s 7,000 MW 50 Hz system, Yacyretá’s 1,600 MW and Acaray’s 200 MW. According to planning studies cited by the researcher, this capacity could become insufficient around 2029.

Solar photovoltaic generation is among the alternatives considered, with Paraguay recording average annual daily global horizontal irradiation of 5.08 kWh/m².

The research also examines stability issues associated with Paraguay’s electrical interconnection with Argentina, which has operated under the current configuration since December 2022. The system experiences inter-area electromechanical oscillations at frequencies of 0.33 Hz to 0.41 Hz.

Itaipu’s power system stabilizer (PSS) is currently the main mechanism used to dampen these oscillations, but its response can be limited under certain low-frequency conditions.

To assess potential solutions, the researchers incorporated a power oscillation damping (POD) controller into photovoltaic plant models, tuning it using the damped Nyquist method. Simulations examined three connection points: the 500 kV Villa Hayes substation, the 220 kV Villa Hayes substation and the 220 kV Acaray substation.

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