Paraguay has seen an astonishing increase in electricity consumption last year, driven largely by the cryptocurrency industry, with continued growth this year due to new agreements with Bitcoin firms. Last year alone, this sector boosted its energy demand by 18% – a growth rate that truly stands unique worldwide.
According to engineer Félix Sosa, president of Paraguay’s national electricity company ANDE, the country has the power infrastructure to support substantial investments in high-energy AI companies, as highlighted by US Secretary of State Marco Rubio’s recent comments.
Managing growing energy demand
Sosa stressed that ANDE has successfully managed the growing energy demand, stating, “we have the capacity,” as Paraguay continues to attract significant investments in energy-intensive industries. When reporters asked Sosa if Paraguay is prepared for these businesses, ANDE’s President stated that the country possesses all the necessary power infrastructure to welcome substantial investments in AI. He explained that the country has plenty of electrical capacity, pointing to “power available in strategic locations”, where these companies can set up shop.
Powering up
For big energy users, especially those needing more than 100 megawatts (enough to power a small city), it is absolutely essential to locate them near very powerful main substations. Those are enormous electrical hubs. ANDE operates five such vital hubs: one near the massive Itaipú power plant, and others strategically located in Villa Hayes, Ayolas, Yguazú, and the recently opened Valenzuela.
To further boost the available power for this growing demand, ANDE plans to add a significant new power line capable of delivering 600 megawatts (enough to power roughly 200,000 to 600,000 homes, depending on how much electricity each home uses) at the Villa Hayes substation. This new capacity will also help meet the increasing electricity needs of the capital city, Asunción, and its surrounding areas.
While ANDE powers up, building a new power station, it also works on getting cleaner energy. Itaipu is breaking new ground with an innovative floating solar plant, and at an international level, Paraguay secured a US$150 Million green energy deal with India.
Current and future energy needs
The figures clearly show the rising electricity demand from these high-consumption businesses. By the end of 2024, these operations required 435 megawatts of electricity. To put that into perspective, 435 MW could power a few hundred thousand homes. This demand is projected to more than double to 1,035 megawatts by December 2025 – enough to power well over half a million homes. Currently, this demand stands at 735 megawatts.
Even if Paraguay generates an impressive amount of electricity, experts points out the modernisation of the internal system for power distribution would greatly help Paraguay. For large technology companies to truly flourish, they require reliable and stable electrical energy, high availability, and continuous supply without interruptions. This requires electrical redundancy through multiple power lines to avoid outages, and ensure stable voltage and frequency.”
