20210831-IRENA-Renewables_Readiness_Assessment_Paraguay_72页_3mb

Paraguay Renewable Readiness Assessment Summary

1. Energy Context

• Dominant Energy Mix: Paraguay's energy sector is dominated by hydroelectric power (99.5% of installed capacity), with significant potential for solar and wind energy.
• Economic Structure: Based on agriculture and services. GDP growth has slowed due to COVID-19; energy intensity is high, especially in transport.
• Fossil Fuel Dependency: Transport relies heavily on imported oil derivatives, increasing GHG emissions and climate vulnerability.
• Energy Efficiency: Efforts through the National Energy Efficiency Plan (EEP) are ongoing but lack clear targets and implementation.

2. Renewable Energy Resources & Potential

• Hydropower: High potential (e.g., Itaipú and Yacyretá plants) but vulnerable to climate change and drought.
• Bioenergy: Significant potential from sugarcane/maize for biofuels; biomass consumption exceeds sustainable levels in some regions.
• Solar & Wind: High insolation across most regions; medium to high wind speeds in northwest areas suitable for wind farms.
• Geothermal: Untapped potential for low-temperature applications.

3. Challenges & Action Recommendations (6 Areas)

1. Strengthen Institutional Governance

• Action: Create an Energy Committee to guide policy implementation and potentially establish a Ministry of Energy.
• Reason: Current institutions lack capacity for rapid renewable deployment; regulatory independence needs strengthening.

2. Enhance Planning & Regulatory Framework

• Action: Develop a national energy plan with clear RE targets; streamline permitting procedures.
• Reason: Scattered institutional responsibility hinders planning; regulatory delays slow project deployment.

3. Develop Policy Instruments for Energy Efficiency

• Action: Enact energy efficiency legislation; raise public awareness campaigns.
• Reason: Emissions remain high despite policies; current efforts lack enforceability/public engagement.

4. Promote Renewable Use Beyond Power Sector

• Action: Create sector-specific roadmaps (e.g., green hydrogen, transport/electric mobility).
• Reason: Missed opportunity to deploy RE in transport, industry and buildings.

5. Foster Investment in Renewable Technologies

• Action: Introduce incentives (tax exemptions), develop dedicated financing schemes.
• Reason: Attract private investment; address high project financing barriers.

6. Build Institutional & Human Capacities

• Action: Map skills gaps, strengthen vocational training programs and institutions.
• Reason: Lack of technical expertise hinders deployment and maintenance of RE infrastructure.

4. Future Outlook

Paraguay is positioned as a regional leader in clean energy transition; diversifying energy mix with RE can drive economic growth, enhance energy security, and align with global climate goals. Stronger governance and institutional coordination will be key enablers.