The Paraguayan Senate has authorized a resolution endorsing the sale of the nation’s excess electricity to cryptocurrency mining firms, considering the terms and assurances that these establishments provide. The proclamation calls for the energy to be directed to 20 new contracts with cryptocurrency-mining companies, criticizing the poor deals that sell energy to Brazil for 25% of the profits obtained for mining activities.
The Senate of Paraguay Demands That Power Surplus Be Distributed to Crypto Mining Firms
A statement endorsing cryptocurrency mining and exploring the importance of diverting excess power to benefit cryptocurrency mining firms has been adopted by the Paraguayan Senate. According to the statement put out by Senator Salyn Buzarquis, the Senate need to publicly endorse global cryptocurrency companies that establish themselves in Paraguay because of the infrastructural investments made in the country that benefit domestic energy companies.
With “never before seen” guarantees from businesses in the industry, Buzarquis said that the National Power Administration (ANDE) was able to earn over $100 million annually from energy sales for bitcoin mining. Over 45 cryptocurrency mining firms are located in Paraguay, and Buzarquis claims that their electricity costs range from $40 plus taxes per MWh to $52 plus taxes per MWh.
Paraguay benefits significantly more from the power purchase agreements (PPAs) with these corporations than from supplying Brazil severely subsidized power. 25% of what legitimate mining companies pay, or $10 per MWh, is paid by Brazil.
According to Buzarquis, ANDE will get $125 million from the 45 mining companies in 2025, which will give the organization flexibility to invest in infrastructure and maintain affordable prices for Paraguayans.
Similarly, the statement notes that contracts authorized to supply electricity for cryptocurrency mining activities may change in the future. It clarifies that, if necessary, terms may be set to restrict the operations of these contracts to times of low demand. By doing this, Paraguay would be able to promote the expansion of its economy and enable miners of cryptocurrencies to operate concurrently.
Buzarquis advocated for selling power to these companies instead of delivering 2,000 MWh to Brazil for subsidized costs, while 20 companies are waiting to create PPAs with ANDE.
The response to the bill’s introduction, which sought to temporarily suspend cryptocurrency mining operations in the nation for 180 days, is the statement.
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