A binational initiative, the construction of the Itaipu power plant was the result of negotiations between Brazil and Paraguay, initiated in the 1960s. The Treaty of Itaipu, the legal instrument for the exploitation of the hydroelectric potential of the Paraná River, shared by the two countries, was signed on 26 April 1973.

In May 1974 the Itaipu Binacional company was created with the mandate of both countries to build and operate the Itaipu power plant. Generation began in May 1984.

In 2016, Itaipu achieved the new world record for annual production of a single hydroelectric power plant, reaching a nine-digit figure of 103,098,366 MWh, with its generating units having a record availability index of 96.3 per cent. Another noteworthy aspect has been an operational performance of 96.2 per cent (having achieved a record of 99.3 per cent in 2014).

Today, Itaipu is responsible for supplying 15 per cent of all electricity consumed in Brazil, and 82 per cent of Paraguay. Currently, Itaipu continues to be the absolute world leader, totaling an accumulated production of 2,450,000 GWh of electricity generation from clean and renewable energy sources, at the begining of May 2017.

In 2003, the company mission was changed "to generate quality electricity with social and environmental responsibility, driving economic, touristic and technological sustainable development in Brazil and Paraguay."

Itaipu's vision for 2020 is to be "the generator of clean, renewable energy with the best operating performance and the world's best sustainability practices, promoting sustainable development and regional integration"