Bitcoin Mining Uses 30% of Paraguay’s Power, Threatening Grid by 2029

Bitcoin mining accounts for roughly one‑third of Paraguay’s electricity generation, prompting analysts to warn of a potential energy shortfall as early as 2029.

Current Share of Power

Energy researcher Victorio Oxilia noted that mining operations consume the equivalent of one and a half turbine units at the Itaipu dam, one of the world’s largest hydroelectric facilities. This represents about 30% of the nation’s total power consumption.

Risk of a Generation Crisis

Conference participants highlighted that if hydrological conditions remain favorable but mining demand continues to rise, Paraguay could face a generation crisis by 2029. Existing power contracts with mining firms expire in 2027, and extensions are uncertain.

Stagnant Generation Capacity

Paraguay’s electricity generation has been largely static, with the only major new project, the Aña Cuá plant, adding 135 MW—insufficient to meet growing demand.

Investment Gap

Analyst Cecilia Llamosas estimated that the country will need between $11 billion and $15 billion over the next 13 years to expand capacity and maintain energy independence, noting a lack of significant investment in the past five decades.

Flexibility of Mining Load

Mining operators can adjust consumption in response to grid load, offering some mitigation compared with residential demand, which follows a fixed daily pattern.

Regulatory Actions

Paraguayan authorities have intensified enforcement against illegal power use by miners, securing convictions for energy theft.