A multi-criteria analysis of the use of economic benefits of ITAIPU Hydropower plant to achieve United Nations Sustainable Development Goals

Paraguay and Brazil - partner countries of the largest hydroelectric power plant in the world (ITAIPU), in terms of electricity production - are currently in the preparation phase to review, in 2023, the conditions of the service cost structure and the commercialization of the energy supplied by the plant, according to Annex C of the ITAIPU Treaty. This phase involves the collection and analysis of information to define objectives and strategies for bilateral negotiations. The current structure of the Cost of Electricity Service of the binational power plant includes, besides the production costs, economic benefits that are distributed to various sectors in the partner countries, with a notable impact in the case of Paraguay. This article aims to contribute to formulate strategies for a binational negotiation based on the impact that such benefits have on the fulfillment of national commitments regarding development plans and the SDG. Therefore, it addresses the linkage of the components of the Cost of Electricity Service (CSE) of the ITAIPU with indicators of compliance with the National Development Plan and the Sustainable Development Goals. The purpose of this work is to provide elements to help define the CSE based on a multi-criteria analysis. This approach and its results can be used both for the formulation and evaluation of negotiation strategies. To this end, the Analytical Hierarchical Process (AHP) is proposed as a method. This method will be applied to the components of the current CES to identify and rank the degree of relevance of each component for the fulfillment of the National Development Plan 2030 (PND 2030) and the Sustainable Development Goals (SDGs).