Itaipú raises Paraguay power supply 19% as infrastructure demands test ANDE’s investment capacity

Between January and August 2026, the Itaipú Binacional hydroelectric facility supplied 19,276 GWh of electricity to Paraguay’s Administración Nacional de Electricidad, an increase of 19% compared to the first eight months of 2025. In August alone, the dam generated 6,796 GWh, with 2,401 GWh delivered to ANDE through the 50 Hz system. Cumulative generation across both Paraguay and Brazil reached 51,144 GWh during the period, equivalent to roughly one year and nine months of Paraguayan national demand.

Itaipú reported 96.35% availability of its generating units at the end of August, exceeding the corporate target of 94%. The facility attributed the performance to operational efficiency, maintenance coordination, and alignment between the Paraguayan and Brazilian electrical systems. The higher energy supply carries direct economic implications for Paraguay, as Itaipú represents one of the principal revenue sources linked to the country’s electricity sector.

Between January and August, Itaipú transferred approximately USD 310 million to the Paraguayan state through royalties, compensation for energy cession, and reimbursement of administrative charges and capital returns to ANDE. Royalties accounted for USD 175 million of the total, while energy cession compensation reached USD 89 million and ANDE received USD 46 million in capital-related payments. In August alone, transfers totaled USD 35 million, with royalties comprising USD 22 million of that amount.

The increased electricity availability arrives as Paraguay confronts a projected energy deficit and an estimated USD 15 billion infrastructure investment requirement. Vice Minister of Mines and Energy Mauricio Bejarano defended government proposals to create a Ministry of Energy, Mines and Hydrocarbons and establish an independent regulatory entity, stating the reforms aim to strengthen ANDE rather than diminish its operational capacity. Bejarano emphasized that the state budget and ANDE’s own resources cannot sustain the USD 2 billion annual investment pace needed to match demand growth, requiring private capital participation in generation and transmission.

ANDE unions have announced mobilizations against the proposed restructuring, which would separate policy, regulatory, and operational functions currently consolidated within the state utility. Bejarano stressed that private investment requires an impartial regulatory framework incompatible with ANDE acting simultaneously as operator and regulator. The government characterized the reform as essential to attracting financing for renewable energy projects including solar, biomass, and small hydroelectric facilities, positioning access to competitively priced clean energy as a tool to attract industrial investment and increase domestic value addition.