coindesk.com
Canadian crypto miner Pow.re secured a contract for 100 megawatts (MW) of power in Paraguay, one of a handful that have been granted by the country's national utility (ANDE), according to a press release sent to CoinDesk on Wednesday.
The contract comes with a five-year fixed rate agreement, although Pow.re did not specify the price of the electricity. The company hadn't responded to a CoinDesk request for comment as of publication time.
Securing low-cost power is paramount to bitcoin miners, because it is their largest operating expenditure.
Paraguay, in the center of South America, has abundant cheap hydroelectricity from one of the largest dams in the world, Itaipu, which it shares with Brazil. However, as crypto miners have flocked to the country in search of cheap power, coflict with ANDE has been brewing. The utility claims the industry is taking advantage of the resource without greatly contributing to the local economy. Another key issue is the absence of infrastructure to make the electricity available for use.
ANDE has introduced new tariffs for miners, raising the price of energy. A bill that would prevent this did not make it through the Paraguayan parliament, despite strong support from the industry.
On Feb. 26, ANDE energized the first of three 500 kV transmission lines between the Itaipu dam and the region of Yguazu. Pow.re has started construction of its 100 MW site, the firm said. The site will bring 4.5 exahash/second (EH/s) of computing power when completed near Yguazu's "newly built substation," which converts power from high to low voltage to make it usable by consumers and industry.