Paraguay is experiencing a burgeoning interest in off-grid solar solutions as a means to electrify its remote areas that remain disconnected from the national grid. This movement coincides with growing concerns over the country’s heavy reliance on the Itaipú hydroelectric dam, which faces potential challenges from climate change and increasing energy demands.
Off-Grid Solar Paraguay as an Alternative
According to PV Magazine, a recent study by the World Bank’s Energy Sector Management Assistance Program (ESMAP) underscores the promising potential of off-grid solar in Paraguay. The report, titled “Off-Grid Solar Market Assessment Paraguay,” reveals that a notable 8% of Paraguay’s population resides in areas without access to the national grid. This encompasses 58,000 households and 2,200 public services, such as health centers and schools.
The ESMAP report further highlights that Paraguay’s dependence on hydropower is becoming increasingly precarious due to climate change and growing energy consumption. The Itaipú dam, the world’s second-largest hydroelectric facility, has been a longstanding power source for Paraguay. However, the country has recently been compelled to import electricity from Argentina during periods of low water levels.
The majority of Paraguay’s unelectrified population is concentrated in remote areas, with 96% residing in the Chaco region. The Paraguayan government is actively exploring the potential of off-grid solar to address this challenge. The report suggests that off-grid solar could provide electricity to these isolated communities while simultaneously reducing the country’s reliance on hydropower.
Paraguay’s Solar Potential for Off-Grid Solar Paraguay
Paraguay boasts significant potential for solar energy, thanks to its abundant sunshine and available land. The country’s inaugural solar park, the 10 MW Planta Solar San Alfredo, was inaugurated in Concepción in 2021. However, solar energy still constitutes a minor component of Paraguay’s overall energy mix. The government has introduced net metering and feed-in tariff schemes to promote solar adoption, yet progress has been gradual.
The ESMAP report identifies several barriers to the expansion of off-grid solar in Paraguay. These include a lack of awareness about the benefits of solar energy, restricted access to financing, and logistical challenges in transporting materials to remote areas. The report recommends that the government establish a regulatory framework for off-grid solar to address these issues.
Investment Opportunities in Off-Grid Solar Paraguay
The report estimates that Paraguay’s off-grid solar market could be valued between $60 million and $80 million. It suggests that the government could initiate the electrification of 17,000 households and 300 public services using off-grid solar systems, necessitating an investment of approximately $10 million.
The Paraguayan government has expressed interest in attracting private investment to develop the off-grid solar market. The report recommends that the government create a favorable environment for private companies to enter the market, develop a regulatory framework, and raise awareness about the benefits of off-grid solar.
Off-Grid Solar Paraguay in Latin America
Paraguay is not alone in Latin America in exploring off-grid solar solutions. Numerous countries in the region are also considering off-grid solar to improve energy access in remote areas. The World Bank’s ESMAP program has been supporting off-grid solar projects across several countries in the region.
Off-grid solar solutions offer a compelling alternative for countries like Paraguay, where large segments of the population remain unelectrified. By investing in off-grid solar, Paraguay can extend electricity access to remote areas, reduce its dependency on hydropower, and attract private investment.
As Paraguay continues to investigate off-grid solar solutions, the country has the potential to become a model for other nations in the region facing similar energy challenges. With the right policies and investments, off-grid solar could play a significant role in Paraguay’s energy future.
