According to a press release sent to CoinDesk on Wednesday, Canadian cryptocurrency miner Pow.re obtained a contract for 100 megawatts (MW) of power in Paraguay, one of a select few that have been approved by the nation’s national utility (ANDE).
The agreement has a fixed rate for five years, though Pow.re did not provide an electricity cost. The company hadn’t responded to a CoinDesk request for comment as of publication time.
For bitcoin miners, securing affordable power is crucial because it accounts for the majority of their operating costs.
In the middle of South America, Paraguay shares Itaipu, one of the biggest dams in the world, with Brazil and benefits from an abundance of inexpensive hydroelectricity. Conflict with ANDE has been simmering, though, as crypto miners have flocked to the nation in search of cheap power. According to the utility, the industry is utilizing the resource without making a significant contribution to the regional economy. The lack of necessary infrastructure to make electricity usable is another major problem.
The price of energy has increased as a result of new tariffs introduced by ANDE for miners. Despite the industry’s strong support, a bill that would have prevented this from happening was not approved by the Paraguayan parliament.
The first of three 500 kV transmission lines between the Itaipu dam and the Yguazu region was turned on by ANDE on February 26. Pow.re announced that work has begun on the construction of its 100 MW site. 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.
