Paraguay achieved an outstanding milestone in 2023: **100% of its electricity came from low-carbon sources**, with hydropower supplying almost all of it—about 99.5%—and fossil fuels contributing none. Paraguay is also a significant net exporter of electricity, helping neighboring regions lower their emissions. Its next challenge is to electrify transport, heating and industry, replacing fossil fuels that contribute to climate change and air pollution. Doing so will require much more clean electricity.

Is Electricity Growing in Paraguay?

Compared with its historical peak, Paraguay’s electricity consumption per person has fallen substantially rather than grown. In 2023, consumption was about **6,500 kWh per person**, roughly 4,100 kWh—or 39%—below the 1997 record of about 10,600 kWh. Low-carbon electricity generation per person was also about 6,500 kWh, around 4,100 kWh below its nearly identical 1997 record. This shortfall is concerning given the need for greater electricity availability to support electrification and future demand, including AI. These comparisons establish a decline from the historical peak, though they do not by themselves show whether consumption grew in 2023 relative to 2022.

Suggestions

Paraguay can increase low-carbon electricity generation by building substantial solar capacity alongside its strong hydropower foundation. Solar projects on rooftops and at utility scale would add clean electricity and diversify the country’s generation mix. Paraguay should also consider nuclear power as a source of dependable, low-carbon electricity, assessing how it could support long-term domestic demand and electricity exports. Investment in transmission, storage and improvements to existing hydropower facilities would help make additional clean generation available to households and businesses.

History

Paraguay’s low-carbon electricity history is dominated by major hydropower expansions followed by uneven output. In the late 1980s, the listed annual gains ranged from about 3 to 8 TWh, including increases of 7.8 TWh in 1986 and 6.7 TWh in 1987. Growth continued through the 1990s, with listed increases of roughly 3–6 TWh. A sharp decline of 8.2 TWh in 2001 was followed by recoveries totaling 6.5 TWh in 2002–2003. The 2010s were more variable: gains of 3.6 TWh in 2011 and 8 TWh in 2016 were interrupted by declines in 2014 and 2017, followed by a particularly large fall of 9.8 TWh in 2019. Further declines in 2020–2021 totaled 8.9 TWh, before a welcome recovery of 3.3 TWh in 2022. This history underscores the importance of sustained expansion in clean electricity generation.

Electricity Imports and Exports

Balance of Trade