Renewable Readiness Assessment Paraguay | IRENA

The Republic of Paraguay is a global leader in the use of renewable energy, with hydropower providing most of its electricity generation, an important renewable energy source in Latin America. The country has also successfully developed bi-national power generation projects, promoting the wider deployment of renewables, and supporting the region’s sustainable energy future.

In recent years, the share of fossil fuels in Paraguay’s energy mix has grown. The country’s increasing dependence on these fuels has resulted in rising greenhouse gas emissions from the energy sector, adversely affecting Paraguay’s energy security and climate commitments. This fossil fuel use is driven mainly by the transport sector, opening an opportunity to discuss the potential deployment of renewables and lowcarbon technologies beyond power generation that would lead towards decarbonisation of the energy sector. Already, the effects of climate change have impacted the country’s power generation, affecting not only the supply but also revenues from electricity exports. Thus, the need to diversify the energy mix has become a key driver for the promotion of clean energy technologies.

These aspects are clearly highlighted in Paraguay’s National Energy Policy 2016-2040 and, more recently, in concrete actions outlined in the Energy Agenda 2019-2023, which focuses on the key pillars for enhancing energy security through the use of renewables, encouraging renewable-powered electrification and promoting sustainable mobility. These key components aim to support the economic growth of the country in line with the 2030 Sustainable Development Goals. The RRA process has been led by the Ministry of Public Works and Communications, represented by the Vice Ministry of Mines and Energy (VMME) in co-operation with IRENA.

The consultation process of the RRA involved a co-ordinated dialogue among the most relevant national energy institutions in Paraguay, as well as regional partners working in the country, identifying key actions to expand renewable energy development. These examine Paraguay’s energy institutions and their governance, long-term energy planning practices, and the socio-economic benefits of promoting renewable and low-carbon technologies in the end-use sectors. The RRA process took place in synergy with the country’s revision of its National Determined Contribution (NDC). The report highlights the strong link between diversifying the energy mix, scaling up renewable energy use, and promoting low-carbon technologies such as green hydrogen and electric vehicles, alongside climate action.