Asunción, Paraguay --- (METERING.COM) --- December 2, 2010 - Advanced metering infrastructure (AMI) for large industrial and residential users and a new distribution management system will be among the outcomes of a new US$100 million loan from the World Bank to Paraguay’s national utility Administración Nacional de Electricidad (ANDE).

The loan, for Paraguay’s Energy Sector Strengthening project, is aimed to increase the quantity and quality of the country’s electricity supply, including contributing to the reduction of service interruptions and associated losses, while also improving ANDE’s performance.

Despite its large generation capacity, Paraguay’s electricity service provision lags in quality and reliability, with high system losses and no reliable system to meter them. System losses are estimated currently at 34.5 percent, with around 10 percent transmission losses and 24. 5 percent distribution losses, split equally between technical and non-technical losses.

The AMI and distribution management system modernization component of the project, which will cost $25 million, will install 1,060 advanced meters, including 10 advanced meters at 63 kV level, and a state-of-the-art integrated distribution management system, including a SCADA system. Of this $20 million will be funded from the loan, with ANDE contributing $5 million.

The other components include improving the performance of the transmission network, at a cost of $96.25 million, and strengthening the national energy sector and ANDE’s institutional capacity at a cost of $3.5 million (the loan amounts being $77 million and $2.75 million respectively).

The electricity service provision currently also faces significant outages and voltage fluctuations and the transmission component will include increased installed transformation capacity and increased reactive compensation capacity. An institutional assessment of the electricity sector also will be carried out, which will make recommendations for implementation.

“We are working to reinforce the National Interconnection System to adequately satisfy our client’s demands,” said German Fatecha, president of ANDE. “Because of this we appreciate the World Bank’s support for this effort to undertake several construction expansion works, which will serve to improve the quality of our electricity supply system.”