Paraguay continues Itaipú dam treaty talks with Brazil

Paraguay continues to negotiate the financial and service terms of Annex C for the binational Itaipú hydroelectric dam with Brazil, stated Miguel Báez, the newly appointed president of Paraguay's National Electricity Administration (Ande). Báez described the ongoing discussions as a search for a "healthy equilibrium" between the two nations regarding the 1973 treaty's provisions.

The core of the dispute lies in Annex C's stipulation that each country is entitled to 50% of the dam's energy. Paraguay has long argued that it sells its surplus energy to Brazil at prices significantly below market rates and seeks the ability to export this excess power to other countries at more competitive values. While both governments agreed in May 2024 to increase the tariffs Brazil pays for the next three years and reached a preliminary agreement allowing Paraguay to sell energy freely on the Brazilian market, the negotiations on Annex C itself are ongoing.

Beyond the Itaipú negotiations, Báez outlined his vision for Ande, emphasizing modernization, strengthening institutional capacity, and expanding Paraguay's electrical infrastructure. He also highlighted the need for a gradual diversification of Paraguay's electricity generation to ensure a more stable energy matrix. To this end, projects for solar power generation in the Chaco region are slated to begin this year, aiming to broaden the country's energy sources, which are predominantly renewable.