Paraguay

Feb. 19 (UPI) — A massive blackout left nearly five million people without electricity in Paraguay amid a heat wave that pushed temperatures above 108 degrees Fahrenheit across large parts of the country and as high as 116 degrees Fahrenheit in some areas, according to local meteorological reports.

The outage affected 90% of customers of the National Electricity Administration, or ANDE, the state-run company that supplies nearly the entire population of 6.4 million people.

The interruption on Wednesday also disrupted drinking water services in urban areas due to reliance on electric pumping systems. Nearly 24 hours after the blackout, service had not been fully restored.

The lack of power also impacted health centers and hospitals in cities across the country’s interior. In those cases, emergency infrastructure and generators failed, and doctors and nurses were forced to perform surgical procedures, including a cesarean section, using the light from their cell phones.

Following the blackout, ANDE attributed the interruption to transmission lines going out of service within the system that connects to the Itaipú hydroelectric plant. The company later denied any malfunction at its facilities and said generation operated normally.

Paraguay is one of the world’s largest producers of hydroelectric power thanks to dams such as Itaipú and Yacyretá, which generate surpluses that are even exported to neighboring countries.

In January, Itaipú covered more than 80% of national electricity demand. However, the transmission and distribution system faces scrutiny over recurring failures and a lack of investment.

Specialists argue that the problem does not lie in energy generation but in the limitations of the transmission and distribution system.

“If we continue growing at the current pace, the system will not withstand it,” engineer Guillermo Krauch of the Paraguayan Institute of Electrical Sector Professionals told UPI.

The blackout comes as President Santiago Peña and Foreign Minister Rubén Ramírez Lezcano are scheduled to hold meetings in the United States with executives from the U.S. International Development Finance Corporation to analyze potential investment projects related to data centers and artificial intelligence developments in Paraguay.

The government of President Santiago Peña approved special electricity tariffs for large consumers, including data centers, cloud computing, artificial intelligence and high-energy industrial projects.

The Ministry of Industry and Commerce seeks to position Paraguay as a regional technology hub supported by its renewable energy, abundant water resources and comparative cost advantages.

However, technical organizations warn that the accelerated expansion of high-consumption industries could worsen service deterioration if transmission infrastructure is not strengthened.

Víctor Giménez, special projects adviser at the Yacyretá dam, said Paraguay lived for decades under a “false sense of energy security.”

“That time is over. Companies now arrive with the intention to invest, but they leave once they understand there is no guarantee of electricity supply for the next five years,” he said.

Peña is currently in Washington to participate in the Board of Peace and hold meetings with business leaders interested in installing data centers in Paraguay.

The heat wave has lasted several days, and Paraguay ranked among the locations with the highest temperatures recorded globally this week.

The free trade agreement between the European Union and Mercosur countries should be implemented without delay, Paraguay’s President Santiago Peña told Euronews. He warned that stalling the agreement would be a “mistake” amid rising geopolitical tensions.

The free trade pact was signed last month by the EU and Mercosur members Brazil, Argentina, Paraguay and Uruguay. However, its full ratification by the EU has been frozen after MEPs referred the agreement to the Court of Justice in Luxembourg.

“We already presented the agreement to the Congress of the Paraguayan Nation last week, and we understand that the European Union has the legal tools to implement it temporarily,” Peña said on Euronews’s flagship interview programme The Europe Conversation.

“We are working to make this happen, and we want Paraguay to be the first country to implement it.” The country currently holds the rotating pro tempore presidency of Mercosur.

Despite the judicial review, the European Commission has the prerogative to provisionally apply the deal once one or more Mercosur countries complete national ratification. While Germany, Spain, Portugal and the Nordics are pushing for the next phase, the Commission currently says no decision has yet been made.

‘Opposition rooted in ignorance’

The agreement would create a vast EU–Latin America free-trade zone, slashing tariffs on goods and services. But resistance in Europe remains fierce, with farmers and several capitals, led by Paris, warning of unfair competition from Mercosur imports.

Peña said that European opposition to the deal was rooted in “ignorance” and an outdated and stereotypical view of Latin America.

“Our countries have changed tremendously. They have developed. Human capital has grown,” Peña said. “Europe has to rediscover Latin America.”

In the interview, Peña warned that rejecting the deal would amount to a strategic blunder, as Europe can no longer rely on the United States as its default trade partner due to President Donald Trump’s unpredictable policies.

“If (MEPs) ultimately prefer not to integrate themselves into (new) markets and instead choose to retain their old alliances that today no longer work, it would certainly be a mistake,” he said.

Still, Peña credited Trump with giving the deal “the final push” after 25 years of talks.

“The world was in a state of drowsiness,” he said. “We weren’t moving, and he came along to move us all. He came to challenge what we thought was stable, and that pushed us to leave our comfort zone.”

According to Peña, one of the EU-Mercosur deal’s key advantages is its potential to counter China’s growing presence in the region and dominance of rare earth supplies.

“Europe is losing an enormous opportunity there, because if there is a region that can compete globally, it is Latin America. We have young talent, a predominantly young population, a population (of people who are) already digital natives,” he said.

“We have that tremendous abundance of natural resources, not only food that grows above the ground, but also minerals that are below the earth, which are so critical to this new technological wave. Our region has absolutely everything that Europe and the world need.”