Search

(...) Paraguay is one of the world's largest producers and exporters of hydro electric energy. In 2015, electricity production was 55,744.2 GWh, mainly generated by the Itaipú and Yacyretá hydro electric power stations, which Paraguay co owns with Brazil and Argentina, respectively. Under the agreements concluded with these countries, which date back to 1973, the energy generated by the power stations is divided equally between the parties.

In 2015, hydro electricity accounted for 68.4% of total energy production, and biomass for 31.6%. That same year, 74% (41,126.7 GWh) of Paraguay's total energy production was exported, mainly to Argentina and Brazil under the bilateral agreements. Paraguay imports all its petroleum products (Chart 4.5). In 2015, hydrocarbons accounted for 39% of the country's energy consumption. Other sources of energy for domestic consumption are biomass (42.6%) and electricity (18.4%). In 2017, some 98.9% of the country's population had access to electricity.

The State continues to play a preponderant role in the management of the energy sector through two State owned enterprises the National Electricity Authority (ANDE) and Petróleos Paraguayos (PETROPAR). During the review period, two institutional changes were made in the energy sector: the creation of a National Energy Efficiency Committee (CNEE) in 2011 and of a Radiological and Nuclear Regulatory Authority (ARRN) in 2014.

The purpose of the National Energy Efficiency Committee (CNEE), as stipulated in Decree No. 6.377/11, is to concentrate efforts to support projects or initiatives aimed at making rational and efficient use of energy. The CNEE is composed of representatives of 11 different institutions , is coordinated by the Vice Ministry of Mines and Energy and reports on its work to the Government. The CNEE is responsible for preparing and implementing the National Energy Efficiency Plan of the Republic of Paraguay presented in July 2015. This Plan lays down five strategic priorities to be pursued by means of specific measures and programmes depending on the sector: political measures; education, awareness raising and training; implementation programmes for the efficient and rational use of energy; energy related diagnostic studies and audits; and maintainability and sustainability measures.

The Radiological and Nuclear Regulatory Authority (ARRN) was established by Decree No. 5.169/2014, which permits the peaceful and beneficial use of ionizing radiation and provides for the establishment of an appropriate regulatory control system. The ARRN is responsible, among other things, for establishing standards in the field, regulating and monitoring the relevant activities and practices in the national territory, as well as measures relating to the safety of radioactive sources, and for ensuring the safe management of radioactive waste. In 2015, the ARRN ratified the Amendment to the Convention on the Physical Protection of Nuclear Materials. The authorities have confirmed that Paraguay does not have any nuclear installations and that there are no plans to build any such installations in the future.

The objectives of the energy sector are set out in the National Plan Paraguay 2030 (section 2), which aims to increase renewable energy consumption by 60% and reduce fossil fuel consumption by 20%. The Energy Policy of the Republic of Paraguay, as approved by Decree No. 6.092/2016, establishes five higher strategic objectives (Box 4.1), together with other specific objectives and an action plan.

Box 4.1 National energy sector – principal objectives
(1) To guarantee energy security, on the basis of criteria of self sufficiency, efficiency and minimum cost, together with socio environmental responsibility, that contributes to the country's productive development.
(2) To ensure that the entire population has access to high quality energy, taking account of consumer rights.
(3) To use domestic energy sources, such as hydro electricity, bio energies and other alternative sources, and to encourage the production of hydrocarbons as strategic resources for reducing external dependence and increasing the generation of greater domestic value added.
(4) To strengthen Paraguay as a pole for regional energy integration on the basis of the sustainable development of its natural resources and its strategic geographical location.
(5) To promote among the population an understanding of the importance of energy and its sustainable use as a factor in overall development.

(...) Electricity, almost exclusively hydro electrically generated, is an important export to the countries that are partners in the binational hydroelectric power stations of Itaipú (14,000 MW, shared equally between Paraguay and Brazil) and Yacyretá (3,200 MW, again shared equally between Paraguay and Argentina).

In addition to the binational power stations, the ANDE owns the hydro electric power station of Acaray, situated in the east of Paraguay, with a capacity of 210 MW, as well as small thermal generating capacities, which altogether total 6.1 MW.

(...) The main objectives of electricity subsector policy established in the National Energy Efficiency Plan are focused on the quality of the service, the security of the supply, electricity's participation in the generation of value added, and universal access.