Itaipú transfers channelled a total of US$1.097 billion to the Paraguayan State through royalties, energy compensation, and payments to the National Administration of Energy (ANDE), between August 2023 and 2025. The disbursements, delivered punctually every month, underscore the hydroelectric plant’s role as one of the country’s most significant sources of revenue and a pillar of national development.
Itaipú, co-managed by Paraguay and Brazil, continues to play a decisive role in the Paraguayan economy. The past two years have marked record contributions, consolidating the dam as not only a major generator of renewable energy but also a driver of state resources.
According to Paraguayan director Justo Zacarías, these funds are transferred directly to the Treasury and distributed under national legislation, offering both fiscal stability and predictability.
Breakdown of Itaipú transfers
Figures from Itaipú’s financial directorate reveal that in the last two years, USD 542 million were paid in royalties, USD 451 million in energy cession compensation, and USD 104 million to ANDE. In 2025 alone, the entity has already injected USD 337 million, divided into USD 170 million in royalties, USD 123 million in compensation, and USD 44 million for the national utility.
This breakdown demonstrates Itaipú’s multi-dimensional impact: supporting the State budget, empowering local governments, and strengthening energy security through ANDE.
Social programmes and local development
By law, part of the royalties is directed to the State’s General Budget, while another portion flows directly to departmental and municipal governments. These Itaipú transfers enable local authorities to invest in infrastructure such as roads, water supply, and community centres, particularly in areas with limited resources.
The energy compensation, meanwhile, finances the National School Feeding Fund (Fonae). This mechanism sustains the “Zero Hunger” programme, guaranteeing meals for schoolchildren nationwide. For many students, these meals represent both nutritional support and a daily incentive to remain in school, reinforcing education and community well-being.
The transfers to ANDE ensure stable resources for investment in Paraguay’s electricity network. This has allowed the company to modernise infrastructure, expand rural electrification, and improve service reliability across the country. As Zacarías has stressed, Itaipú transfers bolster ANDE’s capacity to plan and execute projects that secure the long-term provision of electricity, which is vital for households, businesses, and industry.
Looking ahead: a strategic asset
The predictability of monthly Itaipú transfers provides a unique opportunity for the State to plan strategically. However, the impact of these resources depends on effective governance. Transparent management is essential to guarantee that funds fulfil their social mission and are not diverted. In this respect, the transfers test Paraguay’s ability to translate energy wealth into tangible benefits for its citizens.
These disbursements also come at a crucial moment in Itaipú’s history. Following the revision of Annex C in 2023, which redefined the financial terms of the treaty, Paraguay is now positioned to secure greater long-term benefits from its share of the dam. The current framework ensures robust flows of revenue, but future negotiations with Brazil will shape how Itaipú contributes to national development in decades to come.
Beyond figures, Itaipú represents a strategic tool for sustainable growth. Its revenues finance schools, support communities, and sustain infrastructure, while its energy underpins Paraguay’s competitiveness in the region.
Moreover, Itaipú is not only a power plant but a must-see wonder and tourist attraction: visitors come from all over the world to admire its massive dam structure, tour its biological refuge, and learn about its engineering and environmental significance.
As Paraguay looks to the future, Itaipú stands not only as a source of renewable energy but also as a cornerstone of fiscal stability and social progress, a true engine of development that reflects the country’s capacity to harness its natural resources for the common good.
