Future of the production of green hydrogen in Paraguay

Abstract

Paraguay is also joining the worldwide movement towards economy decarbonization by considering hydrogen as a viable option. Given Paraguay’s abundant renewable energy resources, boasting approximately 8.7 GW of installed hydroelectric capacity, as well as its cost-effective electricity, the country is attracting significant interest from various companies looking to engage in large-scale production of green hydrogen. However, Paraguay is currently experiencing a significant increase in electricity demand, with a growth rate of approximately 8% per year. By 2033, the country’s power system has the potential to attain a generation reserve margin of 12% if this pattern persists. An additional crucial aspect to consider is that the operator of the national electricity grid (ANDE) is currently developing various scenarios to accommodate the increasing demand for electricity energy. Nevertheless, these scenarios fail to consider the potential impact of widespread hydrogen production on the power grid. This paper aims to close the existing gap by introducing multiple scenarios for electricity demand that incorporate hydrogen production facilities linked to the National Interconnected System.