President Santiago Peña declared himself the “principal negotiator” for Paraguay in talks with Brazil over revising Annex C of the Itaipu Treaty, which sets financial and electricity service terms for the 14,000 MW binational dam. Speaking on March 26, 2026, while inspecting school works, Peña emphasized he is leading the technical team and will never accept a concessions posture. Annex C, under review since its 50-year term ended in August 2023, currently forces Paraguay to sell unused energy quotas to Brazil at preferential below-market prices. Paraguay seeks the right to export its surplus freely to Brazil’s regulated or free market. In May 2024, both countries raised the tariff to US$19.28/kW-month (from US$16.71) for 2024-2026 and reached a preliminary accord on free surplus sales. Negotiations had been suspended in 2024 after Brazil admitted espionage against Paraguay in 2022. Peña met Brazilian President Lula da Silva on March 23, 2026, during a COP15 preparatory event, discussing the strategic bilateral link. Itaipu supplies 86% of Paraguay’s electricity and 9% of Brazil’s. Peña insists the government is working for Paraguay’s best interests.