Deforestation Cuts the Lights: Itaipu, Belo Monte and the Cost of Forest Loss

Amazon deforestation reduces rainfall and river flow, leading to significant energy and revenue losses for Brazil's largest hydroelectric plants. Together, Itaipu and Belo Monte lose an estimated 3,780 GWh of generation potential annually, equating to approximately US$ 200 million in lost revenue. The report emphasizes the need to integrate forest conservation and restoration policies with energy security strategies to protect the national electricity mix.

• Amazon deforestation negatively impacts hydroelectric power generation by modifying rainfall patterns and reducing river flow, which affects plants both within and outside the Amazon biome.
• Combined, the Itaipu and Belo Monte hydroelectric power plants lose approximately 3,780 GWh of energy generation potential and US$ 200 million in revenue every year due to deforestation.
• Itaipu HPP, located over 1,000 km from the Amazon biome, suffers an average annual electricity generation loss of 1,380 GWh, resulting in a revenue loss of approximately US$ 86 million, or about 6% of its recent average annual profit.
• Belo Monte HPP, located within the Amazon biome, experiences an average annual generation loss of 2,400 GWh, which translates to a US$ 110 million annual revenue loss, representing approximately 20% of the plant's EBITDA.
• The areas of the Amazon most critical for Belo Monte's generation are concentrated in eastern Pará and western Maranhão, specifically within the 'arc of deforestation' where agricultural expansion is high.
• Deforestation-induced losses in hydroelectric capacity may force the National Interconnected System (SIN) to increase reliance on more expensive and polluting thermoelectric plants, which rely on fossil fuels and increase greenhouse gas emissions.

APA

Climate Policy Initiative (2025). Deforestation Cuts the Lights: Itaipu, Belo Monte and the Cost of Forest Loss. https://www.climatepolicyinitiative.org/publication/deforestation-cuts-the-lights-itaipu-belo-monte-and-the-cost-of-forest-loss/

Chicago

Climate Policy Initiative. Deforestation Cuts the Lights: Itaipu, Belo Monte and the Cost of Forest Loss. 2025. https://www.climatepolicyinitiative.org/publication/deforestation-cuts-the-lights-itaipu-belo-monte-and-the-cost-of-forest-loss/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Deforestation Cuts the Lights: Itaipu, Belo Monte and the Cost of Forest Loss |date=31 March 2025 |url=https://www.climatepolicyinitiative.org/publication/deforestation-cuts-the-lights-itaipu-belo-monte-and-the-cost-of-forest-loss/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025deforestation, author = {{Climate Policy Initiative}}, title = {{Deforestation Cuts the Lights: Itaipu, Belo Monte and the Cost of Forest Loss}}, institution = {Climate Policy Initiative}, year = {2025}, month = mar, url = {https://www.climatepolicyinitiative.org/publication/deforestation-cuts-the-lights-itaipu-belo-monte-and-the-cost-of-forest-loss/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }