The 20th century sustained increase in energy demand lead to an oil crisis in the 70s resulting in a world which was more concerned with the future depletion of natural resources and with energy diversification processes. Influential factors of energy demand rising will continue progressing (such as population growth, higher comfort requirements, etc.); that, coupled with the mismanagement of natural resources and imminent Climate Change, has forced humanity to consider a new approach to development [1] and the concept of sustainable development arisen as “the development that meets the needs of the present, without compromising the ability of future generations to meet their own needs” [2].

At a global level, the biggest challenge is to find a balance point that achieves a sustainable energy future, covering the growing energy demand, taking care of the environment and achieving better living standards simultaneously, considering the right to live in a healthy and pollution-free environment [3]. To accomplish this goal, renewable energies were considered. In front of the inefficiency of most industrial/domestic/etc. appliances and the incorrect habits of the population concerning energy consumption, another reliable alternative is Energy Efficiency (EE). This approach refers to producing the same amount of services with a lower energy consumption through the optimisation of production processes and prioritising practices that help to reduce the energy consumption without affecting people’s living standards [4]. With the EE promotion and with renewable energy use, many governments have created their EE policies, encouraging energy savings to keep economic growth, achieving an energy intensity decrease. Worldwide, most of the countries are also creating their energy policies prioritising actions aiming climate change effects mitigation. Along with this, the use of clean energy supply technologies and the promotion of energy efficiency is growing significantly [5,6].

The European Union is one of the EE main precursors. To ensure the supply, competitiveness and environmental protection, its energy policymakers strongly promote EE measures and renewable energy production, considered indispensable tools to guarantee the security of energy supply, competitiveness and environmental protection. In Latin American countries, according to Lutz [7], policymakers are still focused on economic and social development, promoting the energy market liberation to attain lower fares and better access to commercial energy. Nonetheless, these countries are developing many actions and programs to change this situation, and it is important to mention that, since the 1970s, the Latin American countries represent around 5% of total energy consumption in a global context.

However, since many countries in the region are developing countries, they have favourable conditions to implement a clean development mechanism, aiming to leverage the economic value of the regional environmental assets, and demonstrating on a worldwide level that sustainable development is a source of opportunities, not representing only costs [3]. In this context, it is important to highlight that the decisions of developing countries’ energy policymakers’ will affect future living conditions, impacting the environment, social progress and, obviously, the energy trends [8].

Consistent with Honty et al. [9], there are two ways to face the growing energy demand in the Latin American region: to develop other energy sources or to build a future based on less energy dependence. In the first case, the challenge requires greater investment and technological development (change in the energy matrix), while the second option offers a model oriented towards a change in consumption habits and less intensive energy production. It should be noted that the option of reducing energy dependence, through the demand reduction, represents an important alternative, mainly for developing countries, which have limited financial resources and too many essential sectors to invest in. This option would contribute to solving the energy sector problems through lower investment costs, assuming that the implementation of EE measures represents lower investment costs than the development of new energy production sources, including the change of the energy matrix or the investment in infrastructure for energy distribution.

In the last years, the energy intensity of Latin American countries and the Caribbean have shown a slight decrease since, as previously mentioned, several EE programs are being implemented in the region, such as programs with different scopes and priority levels, which have attained diverse levels of success. Analysing the region, energy market integration is being developed with the most concrete steps in Southern Common Market (Mercado Común del Sur, MERCOSUR), the main free-trade zone in South America, which includes Argentina, Brazil, Paraguay, Uruguay, Bolivia and Venezuela as states members, including also other associated states [7].

Although the energy reforms promoted by MERCOSUR represent significant advances for the region, the results are diverse among the countries [3]. Due to differences in population growth, technology development, economic structure, etc., each country of the region has implemented EE programs with different characteristics and development degrees, according to its own needs and situation. Thus, analysing results and progress levels, Brazil is ranked as advanced, Chile in development and Paraguay at a preliminary stage [6].

This paper aims to provide an assessment of the energy situation of Paraguay highlighting the importance given to EE to achieve sustainable development and as a strategy towards low carbon and low energy-built environment. A description of energy policies, sectors of greater consumption and targets set for increasing EE in the country was developed. An emphasis on the building sector was made to provide a foundation for policy analysis to enhance EE and energy conservation in this economic sector. Furthermore, the barriers identified in energy matters and objectives achieved were highlighted, and the importance of EE for the country was justified.

EE policies implemented by Paraguay are presented, and a picture of the country’s strategy on energy-related issues is provided as an overview of the historical evolution and the status of energy policy. Research, reports and projects carried out in this area were summarised, as well as a discussion of the main actions, plans, programs and laws launched by the National Government. This paper puts its focus on the building sector too, aiming to demonstrate the importance of EE increasing in this sector in the overall reduction of energy consumption, contributing its results for future public policymaking. Identifying EE as a reliable strategy for reducing energy dependence, the country can focus on this alternative, instead of continuing to build energy generation structures, which continue to promote the existing energy consumption and waste.