The Paraguayan Senate has approved a resolution supporting selling the country’s energy surplus to crypto mining companies, given the price and guarantees that these institutions offer. The declaration criticizes the subpar agreements that sell energy to Brazil for 25% of the fees collected for mining activities, calling to direct this energy to 20 new contracts with crypto-mining companies instead.
Paraguayan Senate Supports Selling Power to Crypto Mining Companies, Criticizes Subpar Energy Agreements With Brazil
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Paraguayan Senate Calls to Redirect Power Surplus to Crypto Mining Companies
The Paraguayan Senate has approved a statement that supports cryptocurrency mining and delves into the significance of redirecting power surplus to support the activities of cryptocurrency mining companies. The statement, proposed by Senator Salyn Buzarquis, states that the Senate must declare its support to foreign crypto companies that settle in Paraguay due to its infrastructure investments that favor national companies in the energy department.
Buzarquis stated that energy sales for cryptocurrency mining allowed the National Power Administration (ANDE) to rake in over $100 million yearly, with “never before seen” guarantees from companies in the sector. According to Buzarquis, over 45 crypto-mining companies installed in Paraguay pay power tariffs ranging from $40 plus taxes per MWh to $52 plus taxes per MWh.
The power purchase agreements (PPA) signed with these companies are far more beneficial for Paraguay than selling heavily subsidized power to Brazil. Brazil pays $10 per MWh, 25% of what legal mining companies pay.
Buzarquis stated that the 45 mining companies will allow ANDE to receive $125 million in 2025, giving the institution some leeway to invest in infrastructure and keep fees low for Paraguayan citizens.
In the same way, the statement contemplates a possible change in the contracts approved for supplying power for cryptocurrency mining operations, explaining that, when needed, conditions could be established to limit their operations to low-demand periods. This would allow Paraguay to support the growth of its economy while allowing cryptocurrency miners to operate simultaneously.
20 companies are waiting to establish PPAs with ANDE, and Buzarquis called for selling power to these companies instead of supplying 2,000 MWh for subsidized fees to Brazil.
The statement comes as an answer to the introduction of a bill that proposed to enact a 180-day temporary suspension of cryptocurrency mining operations in the country.
What do you think about the Paraguayan Senate’s pro- crypto mining statement? Tell us in the comments section below.
