Construction of a Photovoltaic Plant for cryptocurrency mining begins in El Salvador
As part of the strategy of the Salvadoran nation, aimed at attracting more investments to El Salvador after the entry into force of the Bitcoin Law, last Tuesday, June 28th of this year, the construction of the first photovoltaic energy park for bitcoin mining in the country began.
The project will be located in the canton of El Gavilán, municipality of Nueva Concepción, department of Chalatenango. Construction is expected to be completed in the next eight months.
The main objective will initially be the mining of cryptocurrencies; however, agreements are expected to be reached with the energy authorities to inject renewable energy into the national grid, by means of “mini hydros”, while a hydroelectric plant is planned in the municipality of Nueva Concepción.
This project, financed by a Swiss consortium led by a Salvadoran investor, will cost USD 200 million.
It is projected that up to USD 15 million will be allocated for the first phase. The plant will initially have an installed capacity of 1.5 MW of energy, achieving a total capacity of 6 MW.
This plant would be the second cryptocurrency mining investment in El Salvador. In October 2021 CEL’s subsidiary LaGeo allocated 1.5 MW of its capacity to mine bitcoins.
This investment is being made in a scenario of uncertainty in the cryptocurrency market due to the fall in prices that has continued in recent weeks. However, the government is optimistic about the potential investments and the magnitude that this project represents for the generation of renewable energy in the country.
Rodrigo Benítez
rodrigo.benitez@garciabodan.com
Associate
García & Bodán
El Salvador