Commons Foundation Has Signed a deal to Buy 100 MW for cryptomining in Paraguay
The Commons Foundation has signed a 10-year 100-megawatt power purchase agreement with Paraguay's grid operator, buying the energy it plans to use for cryptomining.
The South American country's grid is almost entirely powered by hydroelectric power, at a cost of about 5 cents per kilowatt hour thanks to dams built on some of the world's largest rivers. Most of the electricity from the Itaipu Dam, the world's largest in terms of average annual energy production, is exported to Brazil under a contract that expires in 2023.
The Paraguayan government is seeking to attract bitcoin miners to soak up excess energy. Last week The country's Senate has passed a bill on the regulation of the industry. The bill requires miners to be licensed by the authorities. According to a press release, the 100 MW provided by the Fund will create 1,000 jobs over the next four years at Villa Hayes in the Jose Falcon district in central Paraguay.
The contract between the Paraguayan Electric Authority (ANDE) and the Community Foundation sets the price of electricity at $30.78 per megawatt hour (MWh). However, the price can be adjusted annually, as well as depending on the rules in accordance with the terms of the transaction. Miners usually prefer fixed-price agreements, fixing prices in advance so that they are not affected by price fluctuations.
"Our contract today is a historic day for Paraguay. I am confident that this business will succeed and attract more investors," ANDE Chairman Felix Coco said in a press release.
The contract was signed on July 15, but announced on Thursday. The Commons Foundation is a Singapore-based organization that invests in crypto and blockchain projects. The Canadian firm Bitfarms (BITF) operates a 10 MW facility in south-central Paraguay.
https://coin-signal.com/cryptonews/commons-foundation-has-signed-a-deal-to-buy-100-mw-for-cryptomining-in-paraguay/
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