Due to the constant development and progress of large investments, Paraguay is establishing itself as one of the regional markets with great potential in the energy sector of the future.
One of the main reasons for Paraguay’s greater energy power, which lies in the country’s renewable resources, is the lack of hydrocarbons. Paraguay has one of the largest hydroelectric potentials in the world. The economy strongly anchored to crops helps generate a perfect scenario for the development and proliferation of a biofuel industry.
In this brightness, Paraguay is receiving more and more attention from foreign countries that are considering investing in this sector. Brazil and Sweden have taken the initiative and are promoters of two of the largest investments in Paraguay’s history in the biofuels and cellulose sectors. For this reason, representatives of the U.S. and Taiwanese embassies have recently held meetings with members of the Government of the Republic of Paraguay with the intention of identifying new opportunities in this sector, specifically in the segment of green hydrogen generation for transportation based on hydrogen fuel cells.
In addition to hydrogen and 3 major dams, other segments with potential and diverse business opportunities were also discussed, such as solar energy, electricity storage and distribution systems, as well as electric vehicles and their components.
Paraguay’s main potential in the hydrogen segment is hydropower. This has two direct advantages. First, the large amount of water available to produce sufficient masses of hydrogen to be commercially viable. The second is that Paraguay has two large hydroelectric dams that reduce the cost of energy, making it one of the cheapest Gigawatt hours (GWh) in the region.
The most powerful hydroelectric plant in the world announced that it supplied a total of over 15,000 GWh this year on the Paraguayan side. With such high production figures, Paraguay suffers from oversupply and is unable to use 100% of the energy available, but this is not a problem within the country. This is why electricity prices favor the attraction of industries, placing the energy storage and distribution sector as one. with numerous business opportunities in Paraguay.
Electricity and heat generation with biomass
Power generation is gaining increasing interest in the biomass sector. For this reason, a biomass cogeneration project (KWK) was presented, although it is new, but the company has been working on this technology for many years. In fact, it has already had several installations operating very reliably and profitably for a number of years.
The concept is estimated to be a compact and above all efficient system, consisting of two modules: one in which the firewood is gasified and the gas generated is filtered, and the other is the cogeneration module itself. In this way, the energy utilization is very high. Having it installed ensures the profitability of the system by ensuring a long operation of more than 4,000 hours per year. It is therefore a particularly interesting technology for energy managers, hotels, neighborhood communities, farms, etc., where the thermal demand in “off-peak” times is at least 60 kW. The electricity can be used for self-consumption or sold to the grid.
Paraguay has been moving to solar energy for decades
Since the energy produced by solar panels began to be known in Paraguay, they were mostly installed in the Chaco and a large part of the Western Region.
In fact, farmers in Chaco are largely driven by photovoltaic power generation facilities. This process dates back decades, when the first solar panels began to be deployed at points where hydroelectric power does not reach or does so intermittently and with low quality. In order to protect the value of electrical equipment in all types of installations, it has become common to implement increasingly large solar panel racks equipped with high-tech processing equipment.
Simultaneously, these systems have been progressively adjusting their prices, as more and more local suppliers are making offers that are more and more adjusted to the costs of the Chaco economy, more and more diversified, without forgetting wind energy, which is used on any scale thanks to the fact that Paraguay is located in a torrid zone that experiences extreme climate changes where any type of energy can be fully exploited, thus ensuring our economy.