Bitcoin Mining Uses 30% of Paraguay’s Power

Analysts at a recent “Accelerating Bitcoin” conference reported bitcoin mining now consumes roughly 30% of Paraguay’s electricity and warned that continued growth could create a power generation shortfall by 2029 if current trends persist.

Energy researcher Victorio Oxilia estimated mining uses the output equivalent to about one and a half turbines at the Itaipu dam, one of the world’s largest hydroelectric facilities. Paraguay’s grid relies almost entirely on hydropower, and analysts linked the sector’s expansion to abundant renewable supply.

Contracts between Paraguayan utilities and mining firms are set to expire in 2027 and officials have not decided whether to renew them. Julio Fernández, head of the Center for Economic Studies at the Paraguayan Industrial Union, warned last year that rising demand without additional generation capacity could lead to blackouts. The only major plant under construction, Aña Cuá, will add about 135 megawatts, a level analysts describe as insufficient against projected consumption growth.

Energy analyst Cecilia Llamosas estimated Paraguay will need $11 billion to $15 billion in investment over the next 13 years to meet rising demand, noting little new power infrastructure has been built in roughly 50 years. Llamosas added that bitcoin mining demand is more controllable than household consumption because operators can scale load up or down in response to grid conditions.

Authorities have increased enforcement against illegal power connections used by some unlicensed mining operations, recording prosecutions and convictions in recent months as part of efforts to protect grid stability.

Analysts said the timing of any generation shortfall will depend on future hydrological conditions, whether mining contracts are extended and the pace of new investment. They urged policymakers to clarify rules for large industrial consumers, accelerate planned generation projects and consider how export of low-cost renewable power should be balanced with domestic supply needs.