The Itaipu HVDC project is one of the largest and most iconic HVDC transmission systems in the world. Commissioned in the 1980s, it transmits power from the Itaipu Hydroelectric Dam on the Brazil–Paraguay border into the Brazilian grid.
With a combined capacity of 6,300 MW, Itaipu remains a benchmark for large-scale HVDC infrastructure, showcasing how long-distance direct current technology can deliver bulk renewable energy from remote hydropower plants to demand centers.
Project Facts Table
| Attribute | Details |
|---|---|
| Length | ~800 km (overhead lines) |
| Capacity | 6,300 MW (two bipolar links) |
| Voltage | ±600 kV HVDC |
| Investment Size | Multi-billion USD (1980s, inflation-adjusted: >$10bn) |
| Companies | Siemens Energy (ETR: ENR, legacy involvement), GE Vernova (NYSE: GE, legacy), ABB (SWX: ABBN, legacy systems) |
| Status (2025) | Operational |
| Expected Completion | Fully completed in the 1980s, ongoing operations |
Background
- Location: Transmits power from the Itaipu Dam (Paraguay) to São Paulo and other industrial centers in southern Brazil.
- Ownership: Operated by Eletrobras (BVMF: ELET3/ELET6) and Furnas, alongside Itaipu Binacional (a bi-national entity owned by Brazil and Paraguay).
- Purpose: Deliver Paraguay’s share of Itaipu’s hydro generation into Brazil’s rapidly growing electricity system.
- Strategic significance: One of the earliest mega-HVDC projects, proving the scalability of long-distance direct current technology for renewable hydropower.
Investor Angle
The Itaipu HVDC project is decades old and state-controlled, but investors gain indirect exposure via listed companies:
- Siemens Energy (ETR: ENR): Provided HVDC components and technology in legacy contracts.
- GE Vernova (NYSE: GE): Involved in converter systems.
- ABB (SWX: ABBN): Early participant in HVDC technology deployment.
- Eletrobras (BVMF: ELET3/ELET6): Brazil’s largest utility, part owner/operator of Itaipu’s transmission system.
Investor relevance:
- While legacy projects generate limited new revenue for suppliers, Itaipu demonstrates the longevity of HVDC assets (operating for >40 years).
- Eletrobras provides ongoing listed exposure to Brazilian hydro and transmission infrastructure.
FAQ
Q: What is the Itaipu HVDC project?
It is a 6,300 MW HVDC system transmitting hydroelectric power from the Itaipu Dam on the Brazil–Paraguay border to southern Brazil.
Q: How long is the Itaipu HVDC line?
Around 800 km of overhead transmission lines.
Q: Why is Itaipu HVDC important?
It was one of the world’s first mega-scale HVDC projects and remains a vital backbone of Brazil’s electricity grid.
Q: Which companies were involved?
Siemens, GE, and ABB provided converter technology and components.
Q: Can investors gain exposure?
Indirectly, via Eletrobras (BVMF: ELET3/ELET6) as operator, and via suppliers such as Siemens Energy, GE Vernova, and ABB with legacy roles.