Overview of Bitcoin Mining in Paraguay
The National Electricity Administration (ANDE) of Paraguay has reassured the public that Bitcoin mining activities in the country are not creating the energy shortages that had been previously anticipated by experts. This declaration was made by ANDE’s President, Félix Sosa, during a recent conference focused on blockchain technology, as reported by the Spanish-language news service Criptonoticias.
Energy Demand and Regulation
Sosa emphasized that the energy demand from cryptocurrency mining operations only exceeds 700 megawatts, which he clarified does not interfere with the electricity supply available to the general populace. Importantly, all mining operations are strictly regulated to take place in specific areas designed to prevent strain on vulnerable regions.
Future Projections
Looking ahead to 2025, Sosa projected that the anticipated electricity consumption attributed to crypto mining could be equivalent to the output from just one and a half turbines at Itaipú Dam, a hydroelectric power facility renowned as one of the largest globally. Itaipú has 20 turbines, with 10 providing excess energy to Paraguay, primarily while Brazil consumes the majority of its capacity.
Energy Access and Economic Impact
In a bid to optimize energy usage, ANDE has granted Bitcoin miners access to what it describes as “abundant, renewable, and affordable energy.” Miners benefit from competitive electricity rates, which vary in accordance with voltage levels: those requiring sub-23 kV pay the least, followed by customers using sub-66 kV and finally, those over 220 kV.
As Bitcoin miners currently utilize just over 700 megawatts, ANDE has plans to increase this capacity to 1,000 megawatts by the conclusion of 2025, expecting this expansion to yield approximately $240 million in revenue for the agency. However, some skepticism exists regarding these optimistic estimates, with engineer Axel Benítez noting that actual mining consumption recorded in 2024 was merely 255.5 MW.
Community Concerns and Illegal Mining
Additionally, not all accounts regarding mining are favorable. Residents in Villarrica’s Santa Lucía District have voiced their concerns over the disturbances caused by mining operations, citing incessant noise from equipment, which has adversely impacted their mental well-being, sleep quality, and overall quality of life, especially for families with children needing special care.
While ANDE remains supportive of legal cryptographic activities, it is concurrently addressing illegal mining hassles, admitting that approximately one-third of its energy production is lost to these illicit operations. To combat this, ANDE has confiscated over 10,000 mining rigs and is now facing pressure from a group of 14 senators who are advocating for a temporary ban on cryptocurrency mining in the country.
