During the "Accelerating Bitcoin" conference, energy analysts warned that bitcoin mining operations pose a significant threat to Paraguay's power grid, potentially triggering a generation crisis by 2029 if current consumption trends continue.
Bitcoin mining currently accounts for 30% of Paraguay's total energy consumption, according to energy researcher Victorio Oxilia. He noted that mining activities alone consume the output of one and a half turbines from the Itaipu dam, one of the world's largest hydroelectric facilities. Paraguay has become a major bitcoin mining hub due to its abundant renewable hydroelectric power.
The country faces mounting energy pressures despite its renewable advantage. While energy demand continues to grow, generation capacity has remained stagnant. Cecilia Llamosas, an analyst, stated that Paraguay would need to invest between $11 and $15 billion over the next 13 years to meet future demand, noting that virtually no major energy infrastructure investments have been made in the past 50 years. The only significant project under development is Aña Cuá, which would generate only 135 megawatts.
Energy contracts between Paraguay and bitcoin mining companies expire in 2027, and their renewal remains uncertain. Julio Fernández, head of the Center for Economic Studies of the Paraguayan Industrial Union, has previously warned that without action, blackouts could occur.
Some analysts have identified potential flexibility in mining demand. Llamosas noted that bitcoin mining operators can adjust power consumption based on grid conditions, unlike residential demand, which follows fixed patterns. Paraguayan authorities have intensified enforcement against illegal power theft for mining operations, registering convictions for these crimes.
