Global Leadership in Hydropower Generation

Paraguay: A Global Hydropower Leader

Paraguay has one of the world's highest levels of renewable energy use per capita, while exporting approximately 85% of the electricity it produces, mainly to neighboring Brazil and Argentina.

Hydropower is the principal source of electricity, accounting for 99.7% of total generation. The country's largest dams include Itaipu and Yacyretá. Despite substantial electricity production, domestic consumption remains relatively low, contributing to continued reliance on biomass and challenges related to deforestation.

Transmission and distribution networks face significant losses, estimated in the original publication at 4% for transmission and 17% for distribution. Low electricity tariffs add to the sector's financial difficulties. The national electricity company ANDE (Administración Nacional de Electricidad) planned grid modernization by 2025. Uncertainty over electricity export prices poses a further challenge to domestic revenues.

Residential consumers account for the largest share of demand, and tariffs remain low. Despite substantial surplus hydropower capacity and a stated potential of 56 GW, western Paraguay has limited electricity access, leading some residents to rely on fossil fuels. The government faces the challenge of improving electricity availability across the country.