Yacyreta

Paraguay and Argentina are studying a $5 billion binational hydropower project on the Paraná River, with 2,880 megawatts of capacity, possible private operation, an estimated six-year construction period and the resettlement of more than 220 families, while financing, environmental impacts and the operating model remain under review.

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.

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.

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.