Itaipú Binacional transferred a total of US$239 million to the Paraguayan state during the first six months of 2026, according to the latest financial report. These funds, derived from the operations of the binational hydroelectric dam, represent a critical source of revenue for the country. Itaipú’s first half 2026 transfers consist of royalties, compensation for the cession of energy, and payments to the Administración Nacional de Electricidad (ANDE), Paraguay’s national electricity company.
This financial injection supports Paraguay’s national budget, local governments, and essential investments in the country’s energy infrastructure. The consistent payments are a cornerstone of Paraguay’s public finances, enabling the government to fund a wide array of public services and development projects across the nation. The figures underscore the significant economic contribution of the Itaipú dam to the Paraguayan economy.
A detailed breakdown of the contributions
The largest portion of the transfers came from royalty payments. During the first semester, these payments amounted to US$131 million, which was disbursed directly to the Paraguayan Treasury. Royalties are paid as compensation for the use of the Paraná River’s water resources to generate electricity. These funds are a direct and vital component of the state’s income, providing essential liquidity for government operations.
In addition to royalties, Paraguay received US$66 million as compensation for the cession of energy. Under the Itaipú Treaty, Paraguay is entitled to 50% of the energy generated. However, as the country does not consume its entire share, it sells the surplus to Brazil. This compensation represents the payment for that ceded energy, providing another significant revenue stream for the state.
Strengthening the national electricity administration
A separate category of payments is directed towards the Administración Nacional de Electricidad (ANDE), the state-owned utility responsible for the country’s power grid. In the first half of the year, ANDE received US$42 million. According to the provisions outlined in Annex C of the Itaipú Treaty, these funds are allocated as reimbursement for administration charges and as a return on the utility’s capital.
This dedicated funding is crucial for the operational health and strategic development of the national electricity provider. It ensures that ANDE has the necessary resources to manage and maintain the power distribution network effectively. Moreover, these financial inflows allow the company to plan and implement long-term investment projects aimed at modernising the grid and improving service reliability for all people in Paraguay.
Itaipú’s first half 2026: An accumulated energy of 37,958 GWh
In the first half of 2026, the Itaipu Binational Hydroelectric Plant supplied Paraguay with 14,603 GWh of electricity through ANDE, according to the monthly report on energy production and supply prepared by the Technical Directorate of the Right Bank of the Entity.
During June of this year, the plant’s generation reached 6,161 GWh, of which 2,874 GWh corresponded to the 50 Hz system. Of this volume, 2,170 GWh were delivered to the Paraguayan electrical system through ANDE. From January to June 2026, Itaipu generated an accumulated energy of 37,958 GWh, equivalent to what Paraguay requires for approximately one year and three months.
It also indicates the high availability rate of the generating units of the hydroelectric plant, which in June was 96.26%, exceeding the company’s target of 94%.
Also read: Paraguay-Brazil Itaipu Treaty Talks Intensify: What Is At Stake?.
