# Paraguay energy security and industrialization challenges > Live situation record from CLSTR: https://clstr.news/situations/paraguay-energy-security-and-industrialization-challenges > Updated: 2026-10-25T22:02:14.000Z. Sources: 5. Developments: 2. Paraguay is facing significant challenges regarding its energy supply and industrial development. Industry Minister Marco Riquelme has called for utilizing low-cost electricity to foster domestic industrialization, noting that current energy exports to Brazil often result in a $6 billion annual manufacturing deficit within Mercosur as finished goods are re-imported. However, energy experts warn of an impending crisis. Projections indicate that by 2028, the country could face scheduled power outages of two to three hours during summer peak periods if new generation sources are not incorporated. By 2030, Paraguay is expected to consume 100% of its allocated energy from the Itaipú and Yacyretá dams. Experts suggest the nation may need to import between 500 and 1,000 megawatts of new power annually to meet rising demand, particularly from new electro-intensive industries that require constant, 24/7 power. Additionally, the nation's reliance on hydroelectric power leaves it vulnerable to environmental fluctuations, such as droughts or extreme water abundance caused by El Niño. In the agricultural sector, there is also a growing push to improve biodiesel production and traceability to meet European deforestation-free requirements. ## Timeline ### 2026-10-25: Paraguay faces potential energy shortages by 2028 Expert Eduardo Viedma warns that Paraguay's stagnant 8,000 MW power capacity and rising industrial demand could lead to scheduled summer blackouts by 2028 without new energy sources. 3 sources. https://clstr.news/cluster/paraguay-faces-potential-energy-shortages-by-2028 ### 2026-10-21: Paraguay faces energy scarcity and traceability challenges Paraguay faces a potential energy crisis by 2028 as cheap electricity supplies dwindle, while the agricultural sector pushes for better traceability to meet European market standards. 2 sources. https://clstr.news/cluster/paraguay-faces-energy-scarcity-and-traceability-challenges --- Cite as: Paraguay energy security and industrialization challenges. CLSTR, https://clstr.news/situations/paraguay-energy-security-and-industrialization-challenges