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The energy mix of the Republic of Paraguay is dominated by clean energy sources, where hydropower accounts for the largest share of the country’s power generation, representing around 99.5% of the installed power capacity. Paraguay sees the need to encourage the diversification of its energy mix through the adoption of renewable energy and net zero technologies. This would contribute to decarbonisation of end-use sectors, mitigation of greenhouse gas emissions, promotion of energy efficiency, and reaching net zero emissions, while attracting investment and bringing diverse socio-economic benefits to the country’s population.
The Renewables Readiness Assessment (RRA) process for Paraguay has identified key actions for accelerating the deployment of renewable energy in the country. The consultative process led by the Ministry of Public Works and Communications, represented by the Vice-Ministry of Mines and Energy (VMME), and facilitated by the International Renewable Energy Agency (IRENA), aims to help unlock Paraguay’s renewable energy potential.
This report examines 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 was conducted in synergy with the country’s revision of its National Determined Contribution (NDC). The resulting 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.
The RRA for Paraguay has identified 15 short and medium-term actions that could create more conducive conditions for renewable energy deployment in the country. These recommendations are grouped in six thematic areas:
- Strengthen institutional structure and governance in energy
- Enhance planning, policy and the regulatory framework for renewable energy
- Develop policy instruments and implementing initiatives to foster energy efficiency
- Promote the use of renewable energy beyond the power sector
- Foster investment in renewable energy technologies
- Reinforce the continuous creation of institutional and human capacities