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Bitcoin mining operators are exerting less pressure on Paraguay’s electrical grid than engineers had initially anticipated, according to the nation’s power supplier.
As reported by the Spanish-language news source Criptonoticias, these remarks were made by Félix Sosa, the President of the National Electricity Administration (ANDE).
During a recent conference focused on blockchain technology, the head of the power authority stated that cryptocurrency mining in Paraguay does not impact the electricity supply for residents.
The Itaipú Dam. (Source: Wutzofant [CC BY-SA 3.0])
Bitcoin Mining: Paraguay Expansion Planned
Sosa indicated that Bitcoin and cryptocurrency miners in Paraguay utilize just over 700 MW of energy.
However, the ANDE leader noted that miners must operate in specific regions of the country.
This regulation ensures that they do not impose burdens on areas that could potentially face power shortages.
Sosa mentioned that the anticipated electricity consumption from crypto mining for 2025 would be comparable to the output of only one and a half turbines from the Itaipú Dam.
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— Bloomberg (@business) July 22, 2025
Itaipú: Playing a Key Role
The dam is among the largest hydroelectric power facilities globally and contains 20 turbines. Nevertheless, the most powerful turbines (operating at 60 Hz) generate electricity primarily for Brazil.
The Itaipú Dam spans the river that divides the two Latin American countries.
Although Brazil receives the majority of the dam’s energy output, the remaining 10 turbines operating at 50 Hz provide surplus electricity for Paraguay.
The Paraná River, the waterway that separates Paraguay and Brazil. (Source: Deni Williams [CC BY 2.0])
In recent years, ANDE has permitted Bitcoin miners to utilize a significant portion of this energy, asserting that it is “abundant, renewable, and cost-effective.”
The provider also claims that, in addition to supplying clean energy, it offers miners electricity at very competitive prices.
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According to Paraguayan law, miners are required to pay differentiated rates based on their electrical voltage needs.
The lowest rates are applicable for the sub-23 kV (medium voltage) category. The subsequent tier is sub-66 kV (high voltage), while users exceeding 220 kV (very high voltage) comprise the final group. Sosa stated:
“Our priority is to ensure responsible energy use, consistent with the capacity of the Paraguayan system.”
While miners currently consume just over 700 MW, ANDE aims to increase this capacity to 1,000 MW by the end of 2025.
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— Financial Times (@FT) July 28, 2025
Bitcoin Mining in Paraguay: Rate Hike Incoming?
The planned capacity increase, according to the firm, is expected to generate revenues of around $240 million for ANDE.
However, Criptonoticias cited an engineer named Axel Benítez who criticized Sosa’s assertions.
Benítez stated that, based on 2024 data, the actual energy consumption billed to cryptocurrency mining firms was only 255.5 MW. The engineer remarked:
“If they are planning to increase from 700 to 1,000 MW by the end of 2025 and ANDE is projected to collect $240 million, a simple math calculation results in a rate of $80 per megawatt hour. That is nearly double the current rate for [crypto miners]. So, this indicates that either a rate increase is forthcoming, or ANDE does not know how to use a calculator.”
Communities Unhappy With Miners
The media outlet reported that some residents of Paraguay have voiced their dissatisfaction with the growth of Bitcoin mining in the country.
It noted that inhabitants of the Santa Lucía District in Villarrica complain about “constant noise from fans and mining equipment.”
They assert that the noise is impacting families’ mental well-being, sleep quality, and overall quality of life. This issue is particularly concerning for children with special needs, according to residents.
While ANDE has adopted a supportive approach toward legal cryptocurrency miners, it has also been actively combating illegal operations.
Last year, the provider acknowledged that it loses approximately one-third of all the energy it generates, with illegal miners being responsible for at least a portion of these losses.
It has also confiscated over 10,000 Bitcoin mining rigs from operators. Last year, a group of 14 senators urged the government to impose a temporary ban on cryptocurrency mining in the nation.
The post Bitcoin Mining Not Causing Any Energy Issues, Says Paraguay Power Provider appeared first on Cryptonews.
