Decarbonization Pathways for Paraguay''s Energy Sector
Paraguay has moved in the right direction to leverage this shift in technology toward modern and clean energies.
The New Energy Policy aims to consolidate Paraguay's position as a key player in regional energy integration, through overarching goals to strengthen the national electricity sector and key subsectors such as: electricity, binational hydroelectric entities, bioenergy, renewable alternative sources, and hydrocarbons.
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.
By promoting biofuels, Paraguay aims to cut carbon emissions and reduce its reliance on imported fossil fuels. The shift toward biofuels is part of a broader “energy transition” that the government sees as crucial to modernizing the country's energy infrastructure.
By relying on natural gas in the short term, Paraguay can reduce its dependence on coal and oil while ramping up its investments in solar, hydrogen, and bioenergy. Paraguay's ambitious energy policy is a bold step toward a more sustainable future, but it also comes with challenges.
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