The Commons Foundation has signed a 100-megawatt, 10-year electricity buying agreement with Paraguay’s grid operator to use energy for crypto mining.
The South American country’s grid runs predominantly on hydroelectric power, with a cost of around 5 cents per kilowatt hour because of dams built on the world’s greatest waterways. The majority of the power from the Itaipu Dam, the world’s biggest yearly energy creation, is sent out to Brazil under a deal that is set to lapse in 2023.
The Paraguay government is hoping to draw in bitcoin (BTC) miners to absorb excess energy. Last week, the country’s Senate passed a bill to regulate the crypto industry. The bill expects diggers to be licensed by specialists.
The 100 MW obtained by the Commons Foundation will make 1,000 job positions throughout the following four years in Villa Hayes at district Jose Falcon in central Paraguay.
The agreement between the Paraguay Electrical Authority (ANDE) and the Commons Foundation sets the cost for the electricity at $30.78 per megawatt hour (mWh).
Anyway the cost can be corrected every year, as well as relying upon regulations, under the terms of the deal. Miners prefer fixed-price arrangements, locking prices ahead of time with the goal that they are not impacted by cost fluctuations.
“Our contract today is a historic day for Paraguay. I am confident that this business will succeed and attract more investors,” stated Félix Sosa, ANDE Chairman.
Also read: Paraguay Approves Bill to Regulate Crypto Mining and Trading
