Energy in Paraguay

This reliance underscores the need for a robust infrastructure, including efficient transmission networks and distribution systems, to leverage the country's renewable resources fully.

[2] Despite its extensive hydroelectric capacity, Paraguay faces environmental challenges, notably deforestation, exacerbated by the widespread use of firewood.

[5] Integration into the South American power market is crucial for Paraguay, enhancing regional energy trade and cooperation.

The strategic emphasis on expanding renewable energy sources is aimed not only at fulfilling environmental commitments but also at stimulating economic growth, creating jobs, and supporting industrial development.

[3] Like many oil-importing countries in the Western Hemisphere, Paraguay has tried to foster the development of special deals for importing crude oil and refined products from Venezuela.

Paraguay, along with Uruguay, signed a deal in 2005 to receive crude oil imports from Venezuela under preferential financing terms.

This significant component of Paraguay's energy mix underscores the country's reliance on oil-based fuels, which remain essential for powering automobiles, aircraft, and ships.

Despite the critical role of oil in supporting modern transportation and industry, it also poses environmental challenges due to its substantial CO2 emissions.

Paraguay, like many other countries, is facing the complex task of balancing its dependence on oil with the urgent need to reduce its environmental impact.

In 2002, the Bolivian and Paraguayan governments signed a preliminary agreement allowing for the construction of a pipeline from southern Bolivia to Asuncion.

In June 2006, the two governments approved a plan to move forward with the pipeline, which would have an initial capacity of 700 million cubic feet per day (20,000,000 m3/d) and require an investment of at least $2 billion.

It operates a single hydroelectric dam, Acaray, and six thermal power plants, with total installed capacity of 220 megawatts (MW).