The energy mix of the Republic of Paraguay is dominated by clean energy sources, with one of the highest shares of renewable energy in South America. Hydropower accounts for the largest share of the country’s power generation, representing around 99.5% of the installed power capacity. Consequently, Paraguay is highly dependent on the hydrological conditions of the rivers that feed the main hydropower plants of the country, where most of the electricity produced is exported to neighbouring countries.
Paraguay’s economy is based mainly on agriculture, livestock and the services sector, which has been
growing in recent years. However, the global crisis caused by the COVID-19 pandemic has affected the
country’s economy, reducing its Gross Domestic Product (GDP) by around 1% during 2020. Regardless of
persistent challenges, Paraguay has experienced social and economic progress over the last two decades,
with national policies and strategies increasingly contributing to the achievement of the Sustainable
Development Goals (SDGs) and reiterating Paraguay’s commitment to reducing its greenhouse gas
emissions by 2030. Advances include the ratification of the Paris Agreement in 2016, the National Climate
Change Law of 2017, and the updated Nationally Determined Contribution (NDC) under the Paris Agreement submitted in July 2021.
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