Paraguay should boost its energy transition to become more clean and renewable – UNDP
RIO DE JANEIRO, BRAZIL – One of Paraguay’s most significant assets is that it is among the world’s largest generators of energy per inhabitant, and that this energy is hydroelectric, clean and renewable.
According to a report prepared by the United Nations Development Program (UNDP), over 83% of this clean energy is exported at low and stable prices, and the country imports polluting hydrocarbons at high and unstable prices to cover its energy demand, in an exchange clearly unfavorable for Paraguay.
The UNDP suggests a number of different approaches that can be addressed in the energy transition that Paraguay should undertake in order to make better use of its clean and renewable hydroelectric energy, which will generate benefits in terms of job creation and skilled labor, favorable impact on the country’s trade balance, increase the country’s export products, and improve the environment and the health of its inhabitants.
OPPORTUNE CONTEXT
The moment is right for the country to promote its energy transition, which involves switching from existing energy sources to other more modern and efficient, clean or non-polluting, and environmentally sustainable ones.
In the case of Paraguay, the energy transition consists of shifting from being a hydropower exporter to becoming a country that uses hydropower as a platform to diversify and energize its economy.
In particular, this report’s analysis of the energy transition focuses on the study of the electricity transition, based on the goals established in both Goal 7 of the 2030 Agenda for Sustainable Development and the Paraguay 2030 National Development Plan.
The report notes that the energy issue in Paraguay has remained the focus of specialists and senior state officials. “The technical requirements necessary to understand the phenomenon and the high levels of political decision making led to a certain indifference towards the issue, both from relevant socio-political and economic players, as well as from the citizens in general.”
Paraguay produces the world’s cleanest energy. It has zero carbon dioxide emissions in 99.9% of its electricity generation, according to the World Economic Forum.
The United Nations Development Program (UNDP) report highlights that the energy used daily in households is linked to hydrocarbons, hydroelectric plants and biomass, i.e. naphtha, electric energy and firewood or charcoal.
Together with Albania, Paraguay is the country with the cleanest energy production in the world, due to zero carbon dioxide emissions in 99.9% of its electricity generation, according to data from the World Economic Forum (Paraguay.com, 2016).
Its hydroelectric energy surplus offers the potential to convert that energy into higher levels of development, through the transition to a more sustainable energy system.
PUBLIC POLICIES
However, in order to promote development through the use of available energy, public policies must be implemented to promote the use of this surplus energy for the benefit of society as a whole.
The country’s current energy matrix is characterized by a significant production or supply of renewable energy, i.e. hydroenergy (47%) and biomass (33%), and a high demand or consumption of biomass (44%) and hydrocarbons (40%).
Despite the increase in domestic consumption, there is a large surplus of electricity in the country, which has been exported since the completion of the Itaipú and Yacyretá dams.
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
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