As the crypto mining industry expands, Canadian crypto miner Pow.re has announced signing a 100 MW contract in Paraguay. This marks the company’s first major international expansion following its launch in Canada.
The new contract, signed with the Yguazu region of Paraguay, will bring the company closer to the massive Itaipu dam. This hydroelectric dam is the second-largest in the world and the country’s largest energy supplier.
Pow.re Secures Five-Year Deal with Paraguay’s ANDE
Pow.re, a Canadian crypto miner, has attained a five-year contract with Paraguay’s national utility, ANDE, to access 100 megawatts of electricity. While the company did not disclose the exact price of the energy, the deal is said to involve a fixed rate.
Obtaining inexpensive energy is essential for bitcoin miners since it is the most considerable expense they face in operation. Paraguay, located in the middle of South America, has an abundance of inexpensive hydroelectricity from the massive Itaipu Dam, which it jointly controls with Brazil.
Nevertheless, tensions with the ANDE electric utility have arisen as crypto miners have migrated to the country, looking to take advantage of affordable energy. The utility alleges that the industry exploits the resource without significantly contributing to the local economy.
Furthermore, a critical issue is the lack of infrastructure to make electricity accessible.
Paraguayan Parliament Fails to Block ANDE’s Energy Cost Increase
Meanwhile, the Paraguayan parliament recently faced a significant setback when it failed to pass a crucial bill to thwart ANDE’s new tariffs for miners. The new tariffs imposed by the country’s state-owned power company have increased energy costs for miners, which has been a major cause of concern for the industry.
Despite receiving backing from industry leaders, the bill could not pass the legislative process, leaving miners in Paraguay grappling with the increased energy costs. The bill’s failure has significant implications for the cryptocurrency mining industry in Paraguay, which has been on the rise in recent years due to the country’s low electricity costs.
With the new tariffs, miners in the country face an uphill battle to remain competitive, which could lead to a decline in the industry’s growth. Last month, ANDE activated the initial three 500-kilovolt power lines that connect the Itaipu dam to the Yguazu area. As reported by the firm, pow.re commenced building its 100-megawatt site.
When finished near Yguazu’s newly built substation, the miner can provide 4.5 exahash/second (EH/s) of computing power, which has been converted from high to low voltage to make it suitable for consumer and industrial use. Pow.re’s signing of the 100 MW contract in Paraguay gives it access to a reliable and cost-effective source of electricity while also allowing the firm to remain competitive in the global crypto-mining market.
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