How Paraguay aims to supercharge electromobility

Public-private cooperation is key to Paraguay’s electromobility goals, especially in Asunción, as legislative changes to achieve the objectives are being planned.

“We see implementation as a public-private alliance, and without a doubt the private sector will be called upon to incorporate electric buses in the system,"deputy transport minister Emiliano Fernández told BNamericas.

“We have many competitive advantages because we produce clean energy through one of the world’s largest hydroelectric plants,” he added.

At least 20% of the 1,700 conventional buses that are currently serving Asunción and its 10 surrounding districts should be replaced with electric vehicles by 2028, when the current administration ends.

The first 30 units are part of a pilot program with Taiwan and expected to start operations later this year.

In May, Taiwanese firm Master Buses signed an agreement with the industry ministry to build a US$30 million electric bus plant in the country, with the first locally produced units expected for 2026. 

Ciudad del Este in Alto Paraná department introduced 20 electric buses last year, which were acquired through a contract awarded to local transport firm Cathay.

To further EV implementation, a public transport law reform to change contracting is planned. The reform also includes the definition of new metropolitan areas in cities such as Ciudad del Este, Encarnación (Itapúa) and Pilar (Ñeembucú).

Fernández said the new areas will facilitate the arrival of new technologies and enable the use of the auctioning and financing mechanisms currently limited to Asunción’s metropolitan area. 

Legislative debates and public consultations on a draft of the bill started last week. 

The largest electric bus fleets outside China are operating in Santiago and Bogotá.