ASUNCIÓN, July 8 — The Itaipu Dam, a 14,000-megawatt hydroelectric plant straddling the Paraná River on the border of Brazil and Paraguay, remains one of the most consequential infrastructure projects in South America. With 20 generating units and a total length of 7,919 metres, the dam stands 196 metres high. Construction began in 1971 and was completed in 1984.
The project, a binational undertaking, is owned by Itaipu Binacional, a company equally held by the two nations. The dam’s output is staggering.
It supplies roughly 90% of Paraguay’s electricity and about 15% of Brazil’s. In 2016, Itaipu set a world record for annual energy production, generating 103.1 million megawatt-hours. The power is transmitted via 750-kilovolt alternating current and 600-kilovolt direct current lines.
The cost of building Itaipu reached $19.6 billion in 1980s dollars. The reservoir it created covers 1,350 square kilometres.
The project was authorised under the Treaty of Itaipu, signed in 1973. That treaty was renegotiated in 2023, setting new financial terms for the sale of Paraguay’s surplus power to Brazil. The dam displaced approximately 40,000 people, including members of the Guaraní indigenous people.
That human cost is a fact recorded in the project’s history, though it is not often foregrounded in discussions of megawatt output. The dam’s installed capacity of 14,000 megawatts places it among the largest hydroelectric facilities in the world by generation capacity, though annual output depends on river flow and operational decisions. As ever, the treaty framework is the bedrock.
The 1973 Treaty of Itaipu established the binational entity and set the terms for power sharing. The 2023 renegotiation adjusted the financial terms, allowing Paraguay to sell its excess electricity to Brazil at higher rates.
The dam’s environmental footprint is considerable. The reservoir flooded 1,350 square kilometres of land, altering ecosystems along the Paraná River. The dam’s length of 7,919 metres and height of 196 metres are notable.
The political dimension is worth noting. Itaipu is a symbol of binational cooperation, but the renegotiation in 2023 highlighted the asymmetries between the two partners.
Brazil is a continental economy; Paraguay is a smaller, landlocked country that relies on Itaipu for the vast majority of its electricity. The new terms were designed to address that imbalance, though the details of the agreement remain subject to periodic review. Looking ahead, the focus will be on how the 2023 treaty terms play out in practice.
The sale of Paraguay’s surplus power to Brazil is now governed by a different pricing formula, and both countries will be watching the revenue flows. The dam itself has been generating power for over four decades, and maintenance of the 20 generating units will become an increasingly important operational consideration. The 750-kilovolt AC and 600-kilovolt DC transmission lines also require ongoing investment to maintain reliability.
The next chapter for Itaipu will be about sustaining its output while managing the financial and technical realities of a project that has already set the world record for annual generation.
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