Promoting private sector investments in energy efficiency in the industrial sector in Paraguay
- Buildings, cities, industries and appliances
Location & People
- Latin America & Caribbean
- Paraguay PY
- Public / Private
- Project size:
- E&S Risk category:
- Category I1
- Category I2
- Category I3
- Instrument Loan USD
- Instrument Grant USD
- Agencia Financiera de Desarrollo (AFD) Loan USD
Project ownersAccredited Entity
- Access Modality: International
- Agencia Financiera de Desarrollo (AFD)
- Inter-American Development Bank (IDB)
Paraguay has a high hydropower capacity, yet industry is largely powered by traditionally inexpensive fuelwood (constituting 83 percent of industrial energy use), causing large amount of emissions from wood burning and associated deforestation. Hydropower is being increased as part of the country's long-term renewable energy goal. At the same time, zero deforestation laws in several regions have increased the price of fuelwood, a trend that is likely to continue. Despite these developments, SMEs are still largely using biomass, and opportunities exist to shift their energy use to renewable sources in order to reduce emissions.
Tools will be developed to generate an enabling environment for energy efficiency investments by SMEs, including standardized performance contracts, insurance contracts, and monitoring and verification systems. Concessional credit lines will be provided to local financial institutions and SMEs, whilst support will facilitate positive institutional, policy and regulatory environments for energy efficiency investments.
The project has an estimated lifespan of 5 years.
- Inter-American Development Bank (IDB) Mr. Matias Bendersky Tel: +1 (202) 623-1723 Ms. Amal-Lee Amin Tel: +1 (202) 623-1924
- Ministry of Planning for Economic and Social Development Paraguay His Excellency Jose Molinas Vega