Valenzuela Substation: A Magnet for Bitcoin Investments in Paraguay

Paraguay’s President, Santiago Peña, led the historic inauguration of the 500 kV Valenzuela Substation, the largest and most modern in the national electrical system, marking a milestone in the country’s energy infrastructure.

This strategic project, executed by the National Electricity Administration (ANDE), strengthens the National Interconnected System (SIN) and directly benefits over 770,000 users in the departments of Cordillera, Central, and Asunción.

With an operational capacity of 1,400 megavolt-amperes (MVA) and 12 power transformers, the Valenzuela Substation connects the binational hydroelectric plants of Itaipú and Yacyretá, ensuring more efficient and reliable distribution of clean, renewable energy. Notably, Paraguay exports a significant portion of the electricity it generates, making its immediate availability of large energy volumes an attractive destination for investments requiring rapid implementation.

According to ANDE’s president, Eng. Félix Sosa, this infrastructure not only improves the stability of the electricity supply but also aims to drive industrialization in the region, positioning Paraguay as a regional energy hub.

“This substation is key to meeting growing electricity demand and supporting large-scale industrial projects,” Sosa stated.

During the event, President Peña highlighted the transformative potential of the project: “This substation paves the way to turn the Cordillera department into a logistics, industrial, technological, and productive hub,” he said.

“I set a clear, tangible goal for Félix Sosa and the ANDE team: to make ANDE the most efficient public company in the Americas and one of the best in the world. Because ANDE will remain a public company in Paraguay,” the president emphasized.

President Peña inaugurated the Valenzuela Substation.

The Valenzuela Substation not only strengthens the electrical grid but also addresses the rising energy consumption, which grew by 18% nationwide in 2024, partly driven by the expansion of Bitcoin mining.

Paraguay, with its abundant hydroelectric energy, has become an attractive destination for this digital industry, which demands large amounts of electricity. According to the Minister of Industry and Commerce, Javier Giménez, digital mining generates significant dollar revenues for ANDE, enabling the funding of new infrastructure projects.

“We are thrilled to see the progress our country has made in recent times. Paraguay has emerged from global anonymity thanks to Bitcoin mining, with industries worldwide contacting us daily to establish operations here,” said Bruno Vaccotti, director of Penguin Group, the first large-scale mining company to set up in Paraguay.

“What is happening today at the Valenzuela Substation is a magnet for companies willing to use our surplus energy at a fair price, immediately, and, as President Félix Sosa says, to keep Paraguayan energy at home,” he added.

The Valenzuela Substation positions Paraguay as a benchmark for green and renewable energy, comparable to global powers like Qatar, but with a sustainable focus.

This project, part of ANDE’s 2021-2030 Master Plan, not only ensures a reliable electricity supply but also attracts industrial and technological investments, driving economic growth and social development.

With this inauguration, Paraguay takes a firm step toward establishing itself as a leading energy and productive hub in Latin America.