Paraguay Becomes First South American Nation to Use 100 Percent Renewable Electricity

President Mario Abdo Benitez wears a face mask as he arrives for a ceremony in tribute to veterans of the 1932–1935 Chaco War between Paraguay and Bolivia, at the Victoria barracks in San Lorenzo, Paraguay, on June 12, 2020. Jorge Adorno/Reuters

SANTA CRUZ, Bolivia—With the electrification of the Bahia Negra plant on Dec. 29, the National Electricity Administration of Paraguay (ANDE) declared the nation now runs on 100 percent renewable electricity.

The transition of the Bahia Negra energy station marked a critical turning point, as it was the last thermal power plant in the country.

Paraguay has been working toward the exclusive use of hydroelectric power since the 1970s, which was made possible through the Itaipu, Yacreta, and Acaray dams.

By 2018, the Itaipu dam alone produced 90.8 percent of the nation’s electricity.

Renewable energy is defined as an energy source that replenishes naturally and constantly. Wind, solar, and hydroelectric power are among the most widely used forms.

View of the closed water dumps of the Yacyreta hydroelectric dam in Yacyreta, Itapua, Paraguay, on Aug. 18, 2021. JUAN MABROMATA/AFP via Getty Images

During a ceremony at the Bahia Negra plant, President Abdo Benitez said the transition was “An unprecedented historical event.”

On Jan. 2, head of the ANDE Felix Sosa said, “We arrived with 100 percent clean and renewable electricity generation throughout the national territory, we met all our goals for the improvement of the electricity distribution network in 2021 and advanced with the implementation of technologies in the commercial system.”

Before its changeover to a renewable electric grid, Paraguay was heavily dependent on diesel imports.

Trucks at the restitution channel during the construction site to place 3 turbines at Ana Cua arm of the Binational Yacyreta hydroelectric dam in Yacyreta, Itapua, Paraguay on Aug. 18, 2021. JUAN MABROMATA/AFP via Getty Images

Paraguay joins the ranks of only seven countries in the world generating either total or the majority of their power from renewable sources. Other nations on the list are Iceland, Norway, Costa Rica, Austria, Brazil, and Denmark.

Experiments to prove the viability of fully renewable power grids have grown in recent years across the globe.

While these conversions offer a low-carbon source of planet-friendly energy, some experts remain skeptical of the long-term viability of renewables, particularly in the face of climate change.

Aerial view of the water dumps of the Ana Cua arm of the Parana River, which water level reached a historic low, at the Yacyreta hydroelectric dam in Yacyreta, Itapua, Paraguay, on Aug. 18, 2021. JUAN MABROMATA/AFP via Getty Images

This is particularly relevant for Paraguay, which derives all of its hydroelectric power from the Parana River, which is part of the greater Plata River Basin running through Bolivia, Argentina, Brazil, and Uruguay.

In 2021 Paraguay suffered a historic drought that greatly affected water levels in the Parana River, disrupting shipping traffic and the local fishing industry. The drought also fueled the record high inflation rates for the nation.

Analyst Fernando Menendez posed the question, “So what happens when the climate doesn’t cooperate?”

When it comes to power grids, energy finance executive Harshit Chatur says it’s important to find the balance between the utilization of renewables and fossil fuels while keeping cost and pollution low, all while ensuring reliable power.

View of the construction site to place 3 turbines at Ana Cua arm of the Binational Yacyreta hydroelectric dam in Yacyreta, Itapua, Paraguay on Aug. 18, 2021. JUAN MABROMATA/AFP via Getty Images

Chatur doesn’t think the answer is so simple, especially given the unpredictable nature of renewables.

Menendez pointed out Paraguay lacks a lot of heavy industries, so expanding its hydroelectric capacities makes sense. However, he also questions whether green technologies will help underdeveloped countries advance economically.

“Part of sustainability is having a long term plan behind it,” he said.

Governor of Alto Paraguay, Jose Domingo Adorno, highlighted this achievement will help develop communities and said, “It’s a historic day for us and it was a dream long cherished by everyone, of having clean and renewable energy.”