Paraguay is a remarkable example of a country that achieves all its electricity from low-carbon sources, with hydropower accounting for nearly 100% of this clean energy production. This outstanding accomplishment underscores Paraguay's commitment to sustainable and environmentally friendly energy strategies. Additionally, Paraguay not only meets its own electricity needs through these green sources but also plays a pivotal role in helping neighboring countries reduce their emissions by serving as a significant net exporter of clean electricity. The next challenge for Paraguay is to continue this streak of clean energy success by focusing on electrifying sectors such as transport, heating, and industry. These efforts will require substantial increases in electricity production, underscoring the need for technological advancements and investments in sustainable infrastructure.
Is Electricity Growing in Paraguay?
Despite its current achievements, Paraguay has experienced a decline in electricity consumption over the years. As of 2023, the total electricity consumption has fallen to 6,464 kWh per person, a notable decline from the 10,609 kWh per person recorded in 1997. Similarly, low-carbon electricity generation per person has decreased from 10,607 kWh in 1997 to the current figure, revealing a reduction of over 4,100 kWh per person. Although these figures may present challenges, they also highlight the potential for growth and development in this sector, particularly if Paraguay capitalizes on its capacity to generate clean electricity. This decrease in consumption should be seen as an opportunity to enhance electricity access and efficiency, to facilitate an increased rate of electrification across various sectors.
Suggestions
To stimulate low-carbon electricity generation growth, Paraguay has options to diversify its energy mix beyond the current predominant reliance on hydropower. Investing in solar energy represents a promising avenue, given Paraguay's favorable solar conditions, and can ensure a steady supply of clean electricity. Another compelling option is the consideration of nuclear energy, which offers reliable, high-capacity clean energy production to complement existing hydropower. By adopting and expanding these technologies, Paraguay can bolster its electricity output in a sustainable manner, meeting future demands for electrification and continuing its leadership in low-carbon energy production.
History
The history of low-carbon electricity in Paraguay has been dominated by a reliance on hydropower, especially during the late 20th century. In the mid-1980s, significant expansions occurred, with yearly increases ranging from about 3 to almost 8 TWh. In the 1990s, this growth continued before peaking in 1997, a landmark year for electricity generation. However, the early 2000s saw fluctuations, including notable declines in 2001 and a modest recovery in subsequent years. In more recent years, challenges have persisted, with volatility evident from steep declines in 2019 and 2021 but also some recovery in 2022. These trends illustrate the inherent variability in hydropower, pointing to the importance of diversifying energy sources, such as exploring nuclear and solar options, to ensure reliable and continuous electricity supply.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.