Institutional strengthening is embedded in the policy, with the creation of the Ministry of Energy, Hydrocarbons, and Mining (MEHM) scheduled for 2024 and a public-private Paraguayan Energy Efficiency Agency by 2030. Regulatory clarity will improve through tariff reform by 2032 and implementation of a digital platform for tariff transparency in 2026. Electrification efforts target 100% coverage for off-grid areas by 2032 via innovative grid and mini-grid solutions, addressing rapid electricity demand growth averaging over 16% annually.
Paraguay plans to modernize its vehicle fleet, aiming for 70% electric public vehicles by 2050 and establishing incentives for biofuels, including bioethanol blends by 2050 and biodiesel quotas at 20% by 2040. Biomass initiatives include reforestation of 160,000 hectares by 2028 and biogas pilot projects by 2035. Green hydrogen usage in public and freight transport is also targeted, with technical regulations set for 2025.
The policy integrates regional market participation by advancing binational hydroelectric commercial strategies and a Southern Cone electricity market agreement by 2030. The government intends to execute competitive renewable energy auctions by 2025 and accelerate grid expansions. The combined regulatory, infrastructural, and renewable energy investments aim to safeguard Paraguay’s clean energy dominance while adapting to mounting climatic and demand pressures.
This article was curated and published as part of our South American energy market coverage.
