Itaipu Hydroelectric Dam
Itaipu Hydroelectric Dam
Itaipu Hydroelectric Dam
By Ibrahim Qureshi
What is the Itaipu Hydroelectric Dam
The Itaipu dam and the hydroelectric plant are on the Paraná River. The
construction of the dam began in February 1971 and cost $19.6bn. The first
unit began generating power in May 1984 and the second generating unit
started operating the same year. Itaipu has 20 generating units, each with a
capacity of 700MW.
What is the Itaipu Hydroelectric Dam
The dam is a major source of electricity for both countries, particularly Paraguay,
for which the dam is a structural element of the country’s economy. Around 10% of
the public revenues of the country are derived from ‘royalties’ (compensation
payments) related to two binational hydroelectric facilities – the Itaipu and Yacyretá
Hydroelectric Dams.
For Brazil, the dam is a source of energy obtained at stable prices. In both countries,
it has contributed to the development of a whole region around the reservoir.
The Government of Brazil uses parts of the proceeds from the sales of generated
hydroelectric power in social and environmental protection measures for local
communities and habitats within and surrounding the dam reservoir, as prescribed by
the Brazilian Constitution of 1988 and related legislation. The allocation key provides
that the areas most impacted by the dam receive the largest share of the revenues.
Since 2003, Itaipu Binacional has been conducting social and environmental
protection activities, as mandated by the Brazilian and Paraguayan
Governments in 2005. These activities are diverse and mostly aimed at
educating the local population to live with the dam, benefiting both the local
populations and the company in a win-win situation.
Activities carried out at the dam are