How does growth affect energy consumption in Paraguay?

In emerging economies like Paraguay, each percentage point of GDP growth typically leads to a proportional -- or even greater -- increase in energy consumption, driven by expanding industrial and agricultural activity, a growing number of vehicles and household appliances and the continued rise of commerce, services and urban infrastructure.

Should Paraguay double its power generation capacity by 2030?

Macarena Hermosilla contributed to this report. Paraguay must double its power generation capacity by 2030 to avoid a supply crisis, as domestic demand rises, infrastructure ages and pressure grows to diversify its energy sources.

Should Paraguay diversify its energy sources?

As an alternative, panelists proposed diversifying Paraguay's energy sources. Paraguay has already identified 22 locations suitable for small hydroelectric plants, which would require an estimated $1.2 billion to build. These plants could be installed closer to consumption centers, reducing strain on the transmission grid.

Is hydrogen the future in Paraguay?

“Hydrogen is the future,” Bejarano stated, highlighting the country’s ambitions to develop hydrogen-based energy solutions over the next few decades. This focus on innovation aligns with global trends and sets Paraguay on a path to becoming a key player in the renewable energy market.

What is the growth rate in Paraguay?

Paraguay's economy has grown at an average annual rate of 3% over the past decade, with a rebound to 4.7% in 2023 and a projected 4.2% in 2024. In the first quarter of this year, growth reached 5.9%.

Why is Paraguay promoting biofuels?

By promoting biofuels, Paraguay aims to cut carbon emissions and reduce its reliance on imported fossil fuels. The shift toward biofuels is part of a broader “energy transition” that the government sees as crucial to modernizing the country’s energy infrastructure.