The cornerstone of Paraguay’s electricity affordability is its extensive hydropower resources.

Paraguay is the only country in all of South America that receives 100% of its electricity from renewable sources including three separate hydroelectric dams, two of which are bi-national projects in conjunction with its neighbors Brazil and Argentina.

The Itaipu Dam (pictured above) is a joint venture with Brazil on the eastern border of the country that was put into service in 1984.  The dam is the third largest hydroelectric power plant in the world with 14,000 MW of installed capacity (shared 50/50 with Brazil) provides Paraguay approximately 86% of the country’s electricity supply needs.

Additionally, other smaller hydropower projects contribute to the country’s energy mix such as the Yacyretá Dam, a bi-national project in partnership with Argentina producing up to 900 MW or approximately 11% of Paraguay’s needs – and a third hydroelectric dam, located in Acaray, Paraguay producing up to 210 MW or approximately 3% of the country’s needs.

This combined massive hydroelectric infrastructure provides Paraguay with a some of the lowest cost electricity generation in the world, allowing it to pass along its low costs to its consumer base.
 

As of the date of this article, the current electricity price in Paraguay is USD 5.2¢ per kWh — less than half the average price of electricity in the United States (USD 12.36¢ per kWh) — less than one-third of the South American average (USD 18.5¢ per kWh) — and shockingly less than one-quarter of Europe’s average (USD 22.8¢ per kWh).