Itaipu pays royalties to Brazil and Paraguay for the use of the hydraulic potential of the Paraná River since 1991. The rules governing the royalties paid by Itaipu are not the same for other Brazilian hydroelectric plants, as these are defined in Annex C of the Itaipu Treaty. The document establishes that compensation must be paid in equal amounts to both countries and that the transfer value should be calculated based on the supplied power megawatt-hour

In Brazil, Itaipu makes the payment to the National Treasury and the National Electric Energy Agency (Aneel) is responsible for managing the distribution of resources among municipalities, states and the Union. The amount paid to each municipality is proportional to the extent of the flooded area in its territory to the formation of the reservoir, according to percentages set by Aneel.

States and cities upstream (above) of the plan, which were indirectly affected by the reservoir, also receive compensation. Royalties resources can be applied to health, education and security programs, but cannot be used for personal payment or rebate to debt, unless the creditor is the Union.

In 2015 Itaipu paid as royalties over US$ 239.5 million. The amount compared to the previous year was 5.37% lower (US$ 13.6 million difference).