# Energy Sovereignty Index — Methodology

**Version:** 1.0
**Created:** April 2026
**Data vintage:** 2021–2025 (varies by indicator)

## Index Architecture

The Energy Sovereignty Index scores Paraguay and 5 peer countries (Brazil, Uruguay, Panama, Costa Rica, Chile) across 4 dimensions:

| Dimension | Weight | Sub-indicators |
|----------|--------|----------------|
| Cost Advantage | 40% | Residential electricity cost (¢/kWh) |
| Energy Mix | 25% | Renewable % TFEC (60%), Hydro MW/capita (40%) |
| Access | 5% | Electricity access % |
| Reliability Tradeoff | 30% | Energy losses % (World Bank) |

**Total weight: 100%**

## Normalization

Min-max scaling within the peer group (0–100 per sub-indicator):
- Higher-is-better: `score = (value - min) / (max - min) × 100`
- Lower-is-better: `score = (max - value) / (max - min) × 100`
- Edge case: if max = min, score = 50 (low-discrimination)

## Composite Computation

`composite = sum(dim_score × dim_weight) / sum(weights_of_valid_dims)`

When a dimension is null (e.g., Panama on Energy Mix), composite is re-normalized over remaining dimensions.

## Data Sources

| Source | Indicators |
|--------|------------|
| IFC CPSD 2025 | Residential cost, business cost, outages, losses (PY) |
| World Bank WDI | Energy losses, access, renewable % TFEC |
| Itaipú Financial Statements | Itaipú generation, installed capacity |
| Yacyretá Annual Report | Yacyretá generation, installed capacity |
| ANDE Tariffs | Reliability improvements |

## Key Caveats

1. Residential cost for BR/PA/CR/CL from WB/Kaggle — NOT IFC CPSD
2. Outages excluded — Paraguay metric (total/yr) incompatible with peers (firms/month)
3. Energy losses: IFC 27.8% for PY headline; WB 11.88% for peer normalization
4. Panama Energy Mix: null — data unavailable
5. Renewable % TFEC: 2021 vintage (IEA-sourced via WB EG.FEC.RNEW.ZS)

## Scores

| Country | Composite | Cost | Mix | Access | Reliability |
|---------|-----------|------|-----|--------|-------------|
| Paraguay | 80.2 | 100.0 | 100.0 | 93.3 | 35.11 |
| Chile | 50.2 | 38.0 | 0.0 | 100.0 | 100.0 |
| Panama | 47.2 | 19.0 | — | 0.0 | 92.72 |
| Uruguay | 38.6 | 0.0 | 63.62 | 100.0 | 58.91 |
| Brazil | 37.3 | 52.0 | 47.42 | 93.3 | 0.0 |
| Costa Rica | 31.2 | 5.0 | 19.29 | 100.0 | 64.57 |

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*This index is a custom composite for informational purposes only. It is not an official published index.*