Experts warned Paraguay must make a $5 billion investment to double its power generation capacity by 2030 or face a production crisis. File Photo by Nathalia Aguliar/EPA
July 23 (UPI) -- Paraguay must double its power generation capacity by 2030 to avoid a supply crisis, as domestic demand rises, infrastructure ages and pressure grows to diversify its energy sources.
Experts warn that without at least $5 billion in urgent investment, the country could go from being one of the world's top exporters of clean energy to facing blackouts at home.
The country depends almost entirely on three major hydroelectric dams -- including Itaipú, jointly operated with Brazil, and Yacyretá, with Argentina -- which for decades have allowed it to sell surplus electricity to its neighbors. But domestic consumption is rising so fast that those sources can no longer meet internal demand.
In emerging economies like Paraguay, each percentage point of GDP growth typically leads to a proportional -- or even greater -- increase in energy consumption, driven by expanding industrial and agricultural activity, a growing number of vehicles and household appliances and the continued rise of commerce, services and urban infrastructure.
