Paraguay achieved 100% low-carbon electricity in 2023, 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 major challenge is to extend this clean-electricity achievement to transport, heating and industry through electrification, which will require much more electricity.

Is Electricity Growing in Paraguay?

The latest per-person figures show that Paraguay’s electricity consumption remains well below its historical peak. Consumption in 2023 was about 6,500 kWh per person, compared with around 10,600 kWh in 1997—a decline of roughly 4,100 kWh, or 39%. Low-carbon electricity generation per person followed almost exactly the same pattern, reaching about 6,500 kWh in 2023 versus a record of around 10,600 kWh in 1997. This substantial gap is concerning given the need for more clean electricity, although comparing these two years alone does not establish whether consumption is currently rising or falling.

Suggestions

Paraguay can increase low-carbon electricity generation by expanding solar power alongside its established hydropower system. Solar installations on homes, businesses and industrial sites, together with larger solar projects, could supply growing domestic electricity demand and support further electrification. Upgrading existing hydropower facilities, strengthening transmission networks and adding electricity storage would also help deliver more clean electricity. Paraguay should additionally consider nuclear power as a long-term option, assessing opportunities for reliable low-carbon generation and regional cooperation.

History

Paraguay’s low-carbon electricity history is dominated by large changes in hydropower generation. The late 1980s brought strong expansion, with the listed annual increases totaling about 22 TWh between 1985 and 1989. Further gains continued through the 1990s, including increases of around 4–6 TWh in several years. A sharp decline of about 8 TWh in 2001 was followed by gains in 2002 and 2003. The 2010s were more uneven: generation rose by about 4 TWh in 2011, fell by 5 TWh in 2014 and rebounded by 8 TWh in 2016, before declining in 2017 and dropping by nearly 10 TWh in 2019. Further falls in 2020 and 2021 were followed by a recovery of about 3 TWh in 2022, reinforcing the importance of sustained investment in additional clean electricity generation.

Electricity Imports and Exports

Balance of Trade