Diversification of Paraguay’s Energy Mix: From Hydroelectric Strength to Resilience
Diversification of Paraguay’s Energy Mix: From Hydroelectric Strength to Resilience
Strategic analyses on institutional frameworks, the economy, and development published in specialized media.
Diversification of Paraguay’s Energy Mix: From Hydroelectric Strength to Resilience
Paraguay’s fiscal imbalance, which reached 3.8% of GDP in 2024 according to the Ministry of Finance, reflects structurally unsustainable public spending, which grew by 7% annually between 2020 and 2024, compared with average economic growth of 3.5%. This imbalance, exacerbated by inefficiencies in the public sector and patronage pressures, threatens macroeconomic stability and increases public debt, which reached roughly 41% of GDP.
Diversification of Paraguay's energy mix
So far this year, investments under Law 60/90 have totaled USD 179 million, a 24% increase over the previous year. This growth reflects the private sector’s confidence in the country’s economic potential and its ability to drive strategic sectors such as agribusiness and technology.
Protecting consumers during the transition: a prerequisite for sustainable development as the electricity sector opens up