Energy Modelling for alternative scenarios in Paraguay using OSeMOSYS.

Paraguay's energy sector, heavily reliant on hydropower (99.5% of installed capacity), 
exports surplus electricity to Brazil and Argentina. However, the transport sector's 
dependence on imported oil products (39% of national consumption) presents a 
challenge. This study aims to explore pathways for reducing emissions and oil imports 
by diversifying Paraguay's energy matrix and electrifying transport. 

Analysis of various scenarios highlights the need for strategic energy diversification and 
technology investment. While the BAU scenario maintains the status quo, the TPMA and 
ELEC scenarios prioritize non-conventional renewables and electrification. Although 
these alternatives require higher investments, they offer long-term benefits, especially in 
emission reductions. The ELEC scenario demonstrates significant potential in lowering 
CO2 emissions by 2030, emphasizing the importance of infrastructure development and 
foreign investment. Future research should focus on further analyzing the economic and 
environmental benefits of integrating wind and solar power, reducing hydropower 
reliance, and exploring additional technologies like hydrogen and biofuels to enhance 
Paraguay's energy sustainability.