Paraguay enters "crucial" energy phase to avert crisis

Paraguay is facing a "crucial period" in securing its energy future, as projections indicate the country could deplete its electricity surplus by 2030 without new generation sources. Javier Giménez, Chief of Staff of the Presidency, emphasized the urgency for the government to diversify the nation's energy matrix to support industrial growth and meet rising demand.

Historically an energy exporter thanks to major hydroelectric dams like Itaipú and Yacyretá, Paraguay is now actively analyzing various alternatives to expand its power supply. These include thermal power plants fueled by natural gas, upgrading existing hydroelectric facilities, and developing solar energy projects with battery storage, as well as wind farms and smaller hydroelectric plants. Giménez highlighted solar energy's potential, noting a pilot project with floating solar panels on the Itaipú reservoir has yielded costs significantly lower than initially estimated.

The government is also in talks with Argentina to explore importing natural gas from the Vaca Muerta field. A joint technical commission is assessing the feasibility of this project, which aims to use the gas for stable electricity generation via thermal power plants, complementing intermittent renewable sources. Additionally, plans are being considered to repower the generating units at binational dams and develop wind power projects, particularly in the Chaco region.

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crucial period