Completed in 1984, it is a binational undertaking run by Brazil and Paraguay at the border between the two countries, 15 km (9.3 mi) north of the Friendship Bridge.

Since the output capacity of the Paraguayan generators far exceeds the load in Paraguay, most of their production is exported directly to the Brazilian side, from where two 600 kV HVDC lines, each approximately 800 kilometres (500 mi) long, carry the majority of the energy to the São Paulo/Rio de Janeiro region where the terminal equipment converts the power to 60 Hz.

[6][7] In 1970, the consortium formed by the companies ELC Electroconsult S.p.A. (from Italy) and IECO (from the United States)[8] won the international competition for the realization of the viability studies and for the elaboration of the construction project.

On April 26, 1973, Brazil and Paraguay signed the Itaipu Treaty, the legal instrument for the hydroelectric exploitation of the Paraná River by the two countries.

Brazil's (and Latin America's) first electric car was introduced in late 1974; it received the name Itaipu in honor of the project.

The construction of the dam was first contested by Argentina, but the negotiations and resolution of the dispute ended up setting the basis for Argentine–Brazilian integration later on.

[10] An important diplomatic settlement was reached with the signing of the Acordo Tripartite by Brazil, Paraguay and Argentina, on October 19, 1979.

This agreement established the allowed river levels and how much they could change as a result of the various hydroelectrical undertakings in the watershed that was shared by the three countries.

Throughout this period, heavy rains and flooding accelerated the filling of the reservoir as the water rose 100 meters (330 feet) and reached the gates of the spillway on October 27.

The last two of the 20 electric generation units started operations in September 2006 and in March 2007, thus raising the installed capacity to 14 GW and completing the power plant.

Due to a clause in the treaty signed between Brazil, Paraguay and Argentina, the maximum number of generating units allowed to operate simultaneously cannot exceed 18 (see the agreement section for more information).

It affected the southeast of Brazil most severely, leaving São Paulo, Rio de Janeiro and Espírito Santo completely without electricity.