President Gustavo Petro of Colombia has proposed utilizing the country’s surplus renewable energy on the Caribbean coast for bitcoin mining, envisioning cities like Barranquilla, Santa Marta, and Riohacha as potential hubs. This initiative mirrors successful strategies in Venezuela and Paraguay over recent years.
Petro described this plan as a significant opportunity to boost development along the Caribbean coast, suggesting co-ownership with the Wayúu community, the largest Indigenous group in Colombia residing there.
According to a 2024 World Bank report, Colombia generates approximately 75% of its electricity from renewable sources, surpassing twice the global average. The Caribbean region is particularly notable for its underutilized wind and solar energy potential.
Petro argued that mining bitcoin using this untapped electricity offers a sustainable alternative, avoiding the fossil fuel emissions concerns prevalent in other regions. This stance responds to Alessandro Cecere of Luxor Technology, who noted Paraguay’s rise to 4.3% of the global hashrate due to its cheap hydroelectric power from the Itaipu Dam.
Paraguay is now the fourth-largest bitcoin mining jurisdiction globally, following the U.S., Russia, and China, as per Hashrate Index data. Its mining operations are powered entirely by renewable sources like the Itaipu dam and other smaller hydro plants, producing six times more electricity than its 7 million residents consume.
Initially attracted to Paraguay in 2021-2022 for low energy costs around $0.03 per kilowatt-hour, industrial miners faced higher prices and stricter deposit requirements from state utility ANDE later on. Despite these challenges, major companies such as HIVE Digital and Penguin Group continue their expansion.
Meanwhile, shifts in the U.S., where CoinDesk reported American miners are pivoting to AI and high-performance computing with over $70 billion in AI contracts, have opened doors for countries like Colombia. These nations offer cheaper electricity and more accommodating regulatory environments.
Despite these advantages, transitioning from online proposals to tangible policies, licensing frameworks, and tariff agreements remains a significant challenge for Colombia.