Paraguay''s Bold Energy Vision: Shifting to
The government has pledged to address these disparities by investing in energy infrastructure in remote areas and providing incentives
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.
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.
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.
Solar energy, in particular, is seen as a vital addition, taking advantage of Paraguay's abundant sunlight to reduce pressure on its hydropower resources. The government also plans to harness bioenergy through biomass and biogases, tapping into organic waste and agricultural byproducts as fuel sources.
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