Itaipú Binational Dam (Brazil-Paraguay) is the world’s largest hydroelectric dam, in terms of energy generated. In 2016, it’s set to break the world record of energy generation by producing more than 100,000 gigawatt hours of electricity. This is enough to power 20% of Brazil’s entire electricity needs (1/3 of the entire demand of California). Moreover, while the United States generates 2/3 of its electricity from fossil fuels, South America generates 2/3 of its electricity from renewable energy sources, making the continent a global leader in renewable energy. Itaipú Dam is the largest power source in the one region in the world that relies predominantly on renewable resources, setting precedent for renewable energy production and management globally.
Paraguay uses only a tiny fraction of its half of the electricity, selling the rest to Brazil. But it needs a long-term plan for its energy use and doesn’t have that yet. Time is running out for two pragmatic reasons: 1) the Itaipú Treaty and power-sharing agreements expire in 2023, implying a renegotiation; 2) Paraguay’s demand is steadily increasing, but this is predominantly for domestic consumption, not industry or job-creation.
In collaboration with key partners at the Universidad Nacional de Asunción as well as the Duke-USP Energy Observatory, we propose a two-phase report would be the basis for a long-term policy proposal to the Government of Paraguay and to Itaipú Binational Dam for how to best harness Itaipú and future renewable energy projects to build sustainable development and sustainable growth.
Our vertically integrated research team will create a proposal for the government of Paraguay and the energy sector that focuses on two specific energy planning needs, in light of its co-ownership of Itaipú Dam:
- First, what to do about Itaipú Dam after 2023, when the Itaipú treaty and currently established energy agreements expire and are up for grabs.
- Second, with a comparative analysis of South America in mind, developing a best practices policy recommendation for Paraguay in its development of hydroelectric energy that will have implications on energy integration between Brazil and Paraguay and the region at large.
If you’re interested in getting connected to this project, please contact Christine Folch.