The Paraguayan government is accelerating plans to diversify its energy matrix with natural gas, solar, and wind projects to prevent the depletion of its electricity surplus by 2030.
Itaipu
Itaipú is a binational hydropower dam shared by Paraguay and Brazil on the Paraná River. For Paraguay it is a key source of electricity, state revenue, and energy-policy negotiations with Brazil.
The Mercosur Summit kicked off in Luque with a focus on the trade agreement with the European Union and negotiations over the Itaipú energy tariff.
Itaipu opened the spillway gates on Sunday to control the reservoir, which reached 220.30 meters after heavy rains upstream, since increasing power generation was not possible due to low demand from the Brazilian and Paraguayan systems.
The Segundo Foro Internacional de la Ingeniería (FIING) 2026 will be held on July 23 in Asunción, organized by the Centro Paraguayo de Ingenieros to discuss national development challenges. The program will cover topics such as the Bioceanic Route bridge, the Plan Paraguay 2X, renewable energy, and the quality of higher education in engineering.
An agreement to supply electricity to Atome's fertilizer plant in Villeta at a preferential rate of $30 per MWh could result in a $750 million loss for Paraguay and ANDE over 15 years.
Paraguay is facing an imminent energy crisis due to a 21% increase in electricity consumption in the first four months of the year, a delay of about two years in ANDE's Master Works Plan, and an investment deficit, which currently stands at $340 million annually compared to the $900 million needed per decade, potentially exhausting the energy surplus from Itaipú and Yacyretá by 2029.
Paraguay has revoked the decrees that encouraged electro-intensive industries and strengthened its National Energy Strategy through 2050 to ensure energy security amid growing industrial demand.
Construction works on the future Chaco General Hospital, which will benefit around 150,000 people in the Western Region, are progressing through the foundation phase, with 70% of earthworks completed and the first 22 piles already installed. The project is being carried out by the Western Health Consortium, which includes a firm linked to Grupo Cartes, under the supervision of the MOPC and the Ministry of Public Health and Social Welfare, with funding from Itaipú Binacional. The consortium's links to Grupo Cartes and related procurement controversies have been reported.
Victorio Oxilia warns that electricity rates below ANDE’s actual cost for energy-intensive industries could jeopardize the finances of the Paraguayan state utility.
Atome PLC has finalized a $665 million investment to build a green fertilizer plant in Villeta, Paraguay, contingent upon the approval of a preferential electricity tariff by ANDE to ensure the project's financial viability.
Data from the National Cadastre Service in 2019 reveal that rural land registered in Paraguay totals 654,861 km²—about 270,000 km² more than the country's officially recognized territorial area of 406,752 km²—reigniting the debate over title overlaps, historical surveying errors, and irregularly acquired lands.
Itaipú transfers to Paraguay fell 12.53% in the first five months of 2026 compared with the same period in 2025, totaling $205,265,900, with the steepest drop in the Energy Cession Compensation, which declined 34.15%, while royalties fell 1.13% and benefits to ANDE rose 1.51%.
The main tourist attractions at Itaipú Binacional will be closed to the public from June 1 to 7 due to the 38th Session of the International Coordinating Council of the Man and the Biosphere Programme (MAB-ICC) of UNESCO, an event that will be hosted at the hydroelectric plant's facilities and will bring together delegations from several countries.
Expert questions Paraguay's sovereignty in the Yguazú Digital project, a mega artificial intelligence center with Taiwan that will use energy from Itaipú, warning that the country will have no control over hardware, algorithms, or significant job generation.
Itaipú Binacional is investing more than G. 20.5 billion in the comprehensive revitalization of Ñu Guasu Park in Luque, with works including the renovation of restrooms, roadways, fencing, parking areas, and playgrounds, as well as the construction of a new User Service Center.
Itaipú Binacional plans to install up to 14,000 MW of floating solar power on its reservoir, a capacity equivalent to that of the current hydroelectric plant. By utilizing 10% of the water surface, the project aims to reduce reliance on hydropower and minimize evaporation. This initiative builds on the success of a pilot plant that already supplies part of the facility's internal consumption and is currently being expanded to include battery storage.
A leaked audio recording reveals that Cartismo senator Javier Zacarías Irún negotiated a position at the Itaipu Binacional entity for the brother of a political operative in exchange for electoral support in Ciudad del Este.
Itaipú Binacional has launched five tenders totaling nearly US$11.4 million for private security services, gardening, tree pruning, and mineral water supply.
The Itaipú Technological Park Foundation opened a G. 11 billion bidding process for cell phone interception equipment for the National Police, while Tedic warns that such devices violate fundamental rights such as privacy and freedom of expression.
Gustavo Ovelar, pre-candidate for mayor of Ciudad del Este for the Colorado Añetete movement, accused the government of using Itaipú Binacional funds to finance attacks on opponents. The accusation was made during a rally with the support of presidential pre-candidate Arnoldo Wiens, on the eve of the municipal internal elections.
Transfers from Itaipu and Yacyretá fell 23.5% from January to April 2026, totaling US$143.5 million, reflecting lower royalties, energy compensation, and energy cession.
Industry leaders and experts see the artificial intelligence megaproject with Taiwan as an opportunity to boost new power generation sources, but warn of the urgent need to strengthen ANDE and expand the country’s energy capacity.
Industry and Commerce Minister Marco Riquelme said the country must prepare to convert its abundant electricity into AI data processing services, rather than ceding the surplus to Brazil.
Paraguay's economic boom, with average growth of 4% over the past three years, is drawing a growing number of Brazilians seeking residency in the country. Data from the National Directorate of Migration show residency applications doubled in five years, surpassing 23,000 requests in 2025. President Santiago Peña compared the current moment to the period of the Itaipu construction.