Leveraging Paraguay’s Hydropower for Sustainable Economic Development

At the request of the Ministry of Finance in Paraguay, CGSD has been working with the Vale Columbia Center for Sustainable International Investment (VCC) over the past few months on an analysis of Paraguay’s hydropower industry, with a specific focus on leveraging this vast resource for sustainable economic development internally. Paraguay is one of the world’s largest exporters of hydropower. Yet, the domestic economy suffers from regular outages and high system losses, and the benefits of this hydropower surplus are not being realized. The result of this work with VCC, a draft report titled “Leveraging Paraguay’s Hydropower for Sustainable Economic Development”, has been posted to the VCC website.

The report:

– Outlines the current challenges faced by the electricity sector and recommends how these could be addressed;

– Provides suggestions for how Paraguay could use its excess electricity to diversify its economy and reduce its fossil fuel dependency; and

– Analyzes past revenue streams from electricity exports, suggests ways to maximize future export revenues, and provides management system tools that could be considered to allocate those revenues efficiently in the future.

Due to the importance and complexity of the issues dealt with in the report, this draft is posted for public consultation. Comments, corrections, and suggestions on the draft report are welcome until Monday, July 8th, 2013. Please visit the VCC website for access to the report and for information on how to submit your comments.

Comments

  • Angel Burró Urbieta says:

    Could be also interesting to analize Eletrobras behavior as a single buyer(Monopsony) and the impact of this inefficiency on the Paraguay´s hydropower industry. In fact, Eletrobras or Brazilian government pay to Paraguay an unfaire or non market price electricity exports . That could be a charming(microeconomic) or technical way to demonstrate that Eletrobras or Brazilian Government do realize the benefit of this hydropower surplus instead of Paraguayan Welfare. Who are Eletrobras owner? Is Eletrobras public or private company? Who manage Eletrobras? Maybe people more powerful than Brazilian government…Thank you!

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