In the world of cryptocurrency mining, two of the most important variables are weather conditions and the cost of electricity. This is why mining projects sometimes orbit towards countries that have appropriate climates for crypto mining facilities (for example, places with low temperatures) and to countries that have low electricity costs (which is the main input of the mining industry). Thus, Latin American countries such as Argentina or Paraguay are emerging as important candidates for this business. Nevertheless, governments have been taking note of this and legislating this activity. Paraguay, recently, is a case of this since the body that manages the regulation of electrical energy in that country decreed that there will be differential rates for mining activity.
According to resolution No. 46984 of ANDE (National Electricity Administration) cryptocurrency miners will have to pay fees between 6% and 58% higher than the established ones. Although the law does not necessarily target miners, they are affected since the law states that the differentiated rate will impact “high consumption activities” among which are also data centers. The increases will be based on the voltage levels, 220kv, 66kv or 23kv. Thus, the miners will have to pay an increase in the electricity rate of 26% for the supply in the 220 KW line; 36% the 66 kW line; 41% if you use the 23 kW. But, if the Bitcoin miner uses ANDE’s 23 kW line, the increase will be 58%.
Regarding what is consideredpeak hours” of consumption, according to the letter of the resolution, in January, February and December, the consumption that takes place from Monday to Saturday, during peak load hours includes from 12:00 to 16:00 and between 18 :00 and 22:00 will be considered as such. While in March, April, October and November, the hours are from 1:00 p.m. to 3:00 p.m. and between 6:00 p.m. and 10:00 p.m. The months of May to September are considered peak loads between 5:00 p.m. and 9:00 p.m., since they are the coldest months of the year.
ANDE explained that the reason behind the measure is to reserve the availability of electrical power for sectors more related to traditional production.
Finally, the president of ANDE announced that he will visit the deputies with his team to ask them to accept the Executive Branch’s veto of the cryptocurrency law, which was rejected in the Senate. “We are going to explain to the deputies so that they accept the veto, mainly because in this bill the intention is to impose an insufficient rate, that if applied, all of us would be subsidizing the consumption of electrical energy for this type of activity.”, explained Felix Sosa. The executive assured that 15% above the current rate is insufficient to cover all the costs of ANDE.
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