Paraguay’s President, Santiago Peña, has announced that the country’s government plans to increase electricity tariffs for mining companies. According to him, this increase should not significantly impact the viability of the industry in Paraguay, and even if it reduces the profitability of mining, companies will continue their operations in the country.
Peña disagreed with a recent statement from the Chamber of Digital Asset Mining (Capamad), which claimed that the cryptocurrency mining industry creates many jobs. The President noted that contracts with mining companies do not include conditions requiring prior consultations before changing electricity tariffs. Tariffs may be increased in case of rising energy costs, and this does not require agreement with miners.
Capamad responded to this statement, pointing out that contracts with the National Electricity Administration (ANDE) imply that any changes should be agreed upon by both parties. However, President Peña is confident that tariff increases will not deter potential investors and that there are still companies interested in doing business in Paraguay.
The President also emphasized that Paraguay is preparing for the arrival of new companies that could be part of the country’s technological ecosystem and contribute to its transformation into a center of technological innovation.
In April of this year, Paraguayan senators were discussing the possibility of selling excess energy produced at the Itaipu hydroelectric power station to miners, instead of exporting it to Brazil and Argentina. Earlier, Paraguayan authorities even proposed a temporary ban on mining in the country for 180 days.
Thus, the Paraguayan government continues to follow its strategy aimed at regulating energy resources while supporting the country’s ambition to become a key player in the technology sector.
