Paraguay Opens Doors to Nuclear Energy

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Researched by Industrial Info Resources (Sugar Land, Texas)--Last August, representatives of the Paraguayan national government and the U.S. government signed a memorandum of understanding (MOU) for cooperation in civilian nuclear energy. The agreement would allow (among other things) the U.S. government to supply civilian nuclear technology to Paraguay for electricity generation.

A certain possibility is opened for Paraguay to have nuclear power generation capacity in the medium term. This would be one more option to diversify the country's electricity generation matrix, which today depends almost exclusively on hydroelectric sources.

Already in the Generation Master Plan 2024-2043 of the National Electricity Administration (ANDE) is the development of up to 8 gigawatts (GW) of photovoltaic generation along with other complementary sources by 2043 to avoid supply shortages in the face of an estimated demand of 11 gigawatts (GW). Between 2022 and 2025, electricity demand increased by almost 50%, (largely stimulated by the increase in crypto mining in the country); in January 2026, a peak of more than 5.5 GW was recorded. Following this evolution, some estimates indicate that by 2030, the share corresponding to Paraguay from the binational plants in Yacyreta (600 megawatts) and Itaipu (7 GW) could be fully consumed, and from 2031, there could be sustained deficits in the electricity supply.

In this context, nuclear generation emerges as a viable option to help compensate for this shortage with stable supply. In any case, specialists estimate that it would be no less than 10 years before having the first nuclear reactor operating in Paraguay since the necessary legal, regulatory and institutional frameworks still need to be adapted and even the necessary technicians and operators for its development, construction and operation have yet to be trained.

However, the first concrete steps are already being taken. After the visit of the director of the International Atomic Energy Agency (IAEA) in 2024, ANDE and the Radiological and Nuclear Regulatory Authority (ARRN) began to develop feasibility studies for the installation of nuclear power plants. Although there are still no details on locations, deadlines or costs, it is estimated that 900 megawatts (MW) could be treated in three small modular reactors of 300 MW. There also is the possibility of private companies installing modular microreactors of up to 30 MW for self-consumption.

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