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Significance
Paraguay will now sell energy from the binational hydroelectric dam to Brazil at a higher price until 2026, after which the price will drop by half. The renegotiation of Annex C of the 1973 treaty, fixing the sale price for the next 50 years, has not been finalised but both parties have committed to do so by year-end.
Impacts
The cost of production is currently around USD9-10 per kilowatt per month, only around half of the price agreed for the period 2024-26.
Increased ‘social investment’ revenues are likely to exacerbate corruption concerns.
Bitcoin-related power cuts and the difficulties of regulating bitcoin farms will raise increased tensions and money-laundering fears.
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2024
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