Paraguayan Industrial Union (UIP) said that Paraguayan Industrial Union could collapse in 2029 if demand continues to increase due to the growth of Bitcoin mining activities.
Bitcoin mining demand could drive energy collapse in Paraguay by 2029
Paraguay is a country facing a strong influx of cryptocurrency mining companies seeking to harness cheap hydropower, and it could be difficult due to the increased activities.
According to the Paraguayan Industrial Union (UIP), if demand continues to increase and generation does not increase, the collapse may be expected as early as 2029. Julio Fernández, head of UIP’s Economic Research Center, has raised vigilance over demand that it escaped beyond its last year.
Fernandez said:
Itaipu and Yacyreta are no longer sufficient. We consume multiple itaipu turbines a year.
Paraguay’s electricity will be almost entirely produced by Itaimu, which will produce 83.879 TWH in 2023. Still, the dam was built on the Brazilian-Paraguay border and is operated in collaboration with the former.
Even with this huge power supply, UIP believes its breaking point is fast. “We are in a very short supply. If we don’t act now, we’re getting a blackout,” Fernandez evaluated, warning authorities to take action before this happens.
One UIP proposal to avoid this collapse is to utilize Argentina’s natural gas export contract to provide a transit and power infrastructure designed to utilize this power source.
“Paraguay can make $400 million a year from toll plazas alone. Thermoelectric plants will also supply the country and sell the surplus to Brazil,” concluded Fernandez.
Even hiking hostile mining policies, energy prices for Bitcoin mining, the Paraguayan government has attracted companies like Hive Digital.
Read more: Hive Digital doubles Paraguay Bitcoin Mining Expansion
