
Paraguay’s energy supply is mostly used for power generation and for obtaining charcoal and alcohols (bioethanol). During the period 2010-2019, electricity exports represented an average of 75.2% of total production. Figure 3. Total energy supply in Paraguay, 2010-2019 Table 2. Table 3. Supply of forest biomass for energy purposes
Wind turbines have also been installed for research purposes. Hydropower has traditionally dominated electricity production, accounting for 98.8% of the country’s total power generation in 2018 (IRENA, 2021a). In the previous two decades, between 75% and 80% of Paraguay’s electricity production was destined for export.
The wind potential of Paraguay is classified as medium to high, with some of the best locations for wind power generation located in Alto Paraguay and Boquerón. In these areas, wind speeds reach an average of 6.5 metres per second per year at an altitude of 80 metres, as shown in Figure 15. Figure 15. Onshore wind speed zoning assessment
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 afecting Paraguay’s energy security and climate commitments.
The energy policy framework promotes new developments on renewables through sustainable production of energy and direct use of natural resources. For this purpose, Paraguay aims at taking advantage of alternative energy sources such as solar and wind energy, in addition to further developments in small and large hydropower.
Additional renewable capacity by 2025 Paraguay’s Development Finance Agency (AFD) has access to concessional and non-reimbursable resources from the GCF to finance renewable energy and energy eficiency projects.
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