Itaipú energy transfer payments to Paraguay drop 32%

Itaipú Binacional has significantly reduced its financial contributions to Paraguay's treasury during the first semester of 2026, with a sharp 32% decline in payments for energy ceded to Brazil. Overall transfers to the Paraguayan state amounted to US$239 million between January and June 2026, a net loss of US$30 million compared to the US$269 million transferred in the same period of 2025.

The most affected component of these transfers was the compensation for Paraguayan energy ceded to Brazil. This specific payment dropped from US$97 million in the first half of 2025 to US$66 million in the first half of 2026, marking the 32% decrease. These funds are constitutionally vital for supporting student nutrition programs through the National School Feeding Fund (Fonae) and for the budgets of local governments.

In contrast, royalty payments experienced a minor increase, rising from US$130 million in 2025 to US$131 million in the current period of 2026. These royalties contribute to the General Budget of the Nation (PGN) and fund communal road works. Meanwhile, the National Electricity Administration (ANDE) received an unchanged US$42 million in profits and administrative reimbursements, mirroring the previous year's figures.

Monthly data for June 2026 further confirms the downward trend, with energy cession payments falling to US$10 million from US$13 million in June 2025. Despite the noticeable cutbacks, Itaipú Binacional defended its financial management, asserting in institutional publications that it continues to honor its financial commitments, providing essential economic input for the state while maintaining optimal energy generation performance.