Bitcoin Mining Consumes 30% of Paraguay's Electricity, Analysts Warn of Potential Energy Crisis by 2029

According to Bitcoin.com, at the "Accelerating Bitcoin" conference, several energy analysts warned about the impact of Bitcoin mining on Paraguay’s power grid. Energy analyst Victorio Oxilia noted that Bitcoin mining currently consumes 30% of the country’s total electricity, equivalent to the output of one and a half turbines at the Itaipu Dam. Should mining operations continue to expand, an energy crisis is projected to emerge by 2029. Meanwhile, Paraguay’s power generation has stagnated for years, requiring an investment of $11 billion to $15 billion over the next 13 years to meet growing demand, despite virtually no major energy investments in the past half-century. Existing energy contracts for mining firms will expire in 2027, with their renewal outlook uncertain. Analysts also pointed out that mining electricity usage is readily adjustable; operators can scale operations up or down based on grid load, making it easier to manage than residential power consumption. Paraguayan authorities have since intensified crackdowns on illegal electricity theft, securing convictions against those involved.