Paraguay stands out as a remarkable example in the global transition to sustainable energy, achieving an impressive feat by sourcing 100% of its electricity from low-carbon sources. This clean electricity almost entirely comes from hydropower, accounting for over 99% of the nation's electrical output. Not only does Paraguay ensure its grid runs on environmentally friendly power, but it also plays a crucial role on a larger scale by exporting significant amounts of clean electricity to neighboring countries, assisting them in reducing their fossil fuel dependence and emissions. The next significant challenge for Paraguay involves the electrification of other sectors such as transport, heating, and industry, which will require a substantial increase in electricity generation from low-carbon sources.
Is Electricity Growing in Paraguay?
Although Paraguay boasts a fully low-carbon electricity supply, recent data from 2023 reveals that the per-person electricity consumption has not reached past levels and stands at approximately 6,464 kWh. This consumption figure is considerably lower than the all-time record set in 1997, which was 10,609 kWh per person, indicating a significant decline of 4,145 kWh. Similarly, low-carbon electricity production per person has also shrunk from its peak of 10,607 kWh in 1997 to the current level, demonstrating a similar drop of 4,143 kWh. Despite such shifts, it is imperative for Paraguay to stimulate growth in its electricity generation to meet future demands and ensure the electrification of more sectors, promoting even greater reliance on clean energy.
Suggestions
To increase its low-carbon electricity generation, Paraguay should explore the expansion and diversification of its energy sources. While hydropower remains the backbone of the nation's electricity generation, integrating solar and potentially nuclear energy into the mix could provide a robust solution to meet growing demands. Solar energy, with its abundant potential in Paraguay, can complement hydropower, especially during dry seasons. Additionally, the consideration of nuclear energy presents an opportunity for a consistent and reliable clean energy source, offering a path to sustainable and continuous electricity supply. Embracing these technologies can secure Paraguay's position as a leader in low-carbon electricity, supporting both domestic needs and regional energy stability.
History
Historically, Paraguay has seen a dynamic progression in its low-carbon electricity generation. In the mid-1980s, the country saw a significant boost in hydropower, with substantial increases in generation recorded in consecutive years: 3 TWh in 1985, followed by 7.8 TWh and 6.7 TWh in the next two years. The subsequent decade continued this upward trend, marked by notable gains in the early 1990s particularly, with peaks in 1994 and 1995. The record in low-carbon electricity generation in 1997 further highlighted this era of growth. However, post-1997, there have been sporadic declines, notably in early 2000s and late 2010s, highlighting periods of challenges in maintaining this high level of production. The early 2000s faced a setback with an 8.2 TWh decrease in 2001, yet modest gains followed. More recently, fluctuations have persisted, with significant declines in 2019 (-9.8 TWh) and 2021 (-5.8 TWh), although 2022 saw a modest recovery. By looking to diversify energy sources, Paraguay can build resilience against such variability and continue its trajectory towards energy sustainability.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.