As Latin American countries have been moving to enhance their energy infrastructure and meet the needs brought by economic development, investors worldwide have been demonstrating their desire to explore the region’s new opportunities.
Gulf nations, especially Saudi Arabia and the UAE, have been among the most promising partners in the region’s upcoming energy endeavors.
The most recent announcement regarding Latin American-Middle Eastern energy partnerships was made last week, when Paraguayan authorities met with their Emirati counterparts and discussed the terms of a memorandum on economic cooperation. Partnerships in renewable energy projects were part of the deal.
With three hydroelectric power plants, Paraguay produces much more electricity than it needs, and exports the excess — more than 60 percent — to Brazil and Argentina.
“But in eight or 10 years, our situation will be much less comfortable. We’ll need to invest in electricity production, something that we’ve never thought about over the past 40 years,” Victorio Oxilia, an energy expert and professor at the National University of Asuncion, told Arab News.
Not only will demand from the population grow, but new industries will implement projects in Paraguay and require more energy, he added.
“At the same time, we need to diversify our sources. All our hydroelectric plants depend on the River Parana. Severe droughts can easily impact power generation,” he said.
Investing in solar energy plants is the natural response to those challenges. A government strategic plan for 2040 established it as a priority, Oxilia said, adding: “It’s a resource that abounds in the whole territory, so it’s a great candidate to be developed not only by Paraguay’s public energy company, but also by private agents.”
The projects currently being discussed will probably be followed by many more in the coming years, and will encompass wind power, hydrogen and synthetic biofuels.