“Paraguay Leads in Renewable Energy: Over 99.7% of Electricity from Renewable Sources”
Project Overview:
After a two-year hiatus caused by financial disagreements, construction has restarted, enabled by a new fixed hydroelectric tariff deal and joint governmental support. The Aña Cuá expansion will install three large vertical-axis Kaplan turbines, adding 270 MW—approximately a 10% increase in the dam’s capacity—sufficient to power a city of 100,000 residents. The project, now underway again, has spent about $200 million of an anticipated $620 million final cost and is 37% complete.
Beneficiaries:
- Argentina: Receives the majority of the electricity generated, improving grid reliability, securing affordable and clean power for industries and homes, and supporting economic growth by supplementing energy needs with renewable sources.
- Paraguay: Gains capacity to meet its rapidly growing domestic energy demand and enhance electricity exports, creating significant revenue. These funds can be directed toward public infrastructure, health, and education, further accelerating national development.
- Local Communities: Towns near the dam, such as Ayolas and Ituzaingó, benefit from about 900 direct and over 1,000 total jobs created by the construction. This local activity boosts demand for services and goods, stimulating both the service and supply economy.
Broader Impacts:
- Binational Partnership: The Yacyretá Binational Entity (EBY), which manages the project, will increase its revenue for further investments across both countries.
- Clean Energy and Sustainability: The increased output supports broader goals of energy transition, reducing fossil-fuel reliance and aiding decarbonization for both economy and environment.
- Challenges: While the expansion brings economic and social benefits, ongoing environmental and social concerns—such as ecosystem changes and potential resettlement—remain topics for continued mitigation and dialogue.
Timeline:
The first of the new turbines is expected online by July 2028, supporting both countries’ strategies for long-term, sustainable energy growth and deeper regional integration.
Summary of the Expansion:
The Aña Cuá expansion at Yacyretá will deliver substantial benefits, including enhanced renewable energy for Argentina and Paraguay, local employment growth, and stronger binational cooperation—while requiring ongoing attention to environmental and community considerations for truly sustainable progress.
The Main Yacyreta Dams Specifications
The core infrastructure of this bi-national project is situated on the Paraná River, Latin America’s second-largest river and one of the largest in the world. It lies roughly 80 kilometres downstream from the cities of Encarnación and Posadas, along the border between Argentina and Paraguay.
Extending nearly 70 kilometres in length, the dam ranks among the longest of its kind worldwide. Construction took place in multiple stages over more than a decade, confronting major engineering challenges posed by the river’s immense scale and flow rate, as well as by the need to protect the surrounding environment and nearby communities.
The structure begins on the Argentine side of the Paraná River and crosses its main navigable channel downstream from the Apipé rapids. It continues for 18.7 kilometers across Yacyretá Island, then spans the Aña-Cuá section before running parallel to the river along the Paraguayan bank, reaching the town of San Cosme y Damián.
The resulting reservoir covers an area of 1,600 square kilometers and holds a total water volume of approximately 21 billion cubic meters. Its powerhouse contains 20 Kaplan turbines, providing an installed capacity of 3,200 megawatts. The facility supplies around 60 percent of Argentina’s hydroelectric output—equivalent to roughly 22 percent of the country’s total energy demand.
The main concrete structure measures 270 meters in length and 27 meters in width. It includes a navigation system that allows vessels with a maximum draft of 3.65 meters to overcome a river level difference of 23.6 meters.
Beyond its technical achievements, the project generated employment for about 12,000 workers during its construction and has since become one of the region’s principal tourist attractions.
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