Welcome to The Calibre Brief, a Calibre Code USA production.

Paraguay sells surplus hydropower beyond its borders. Yet inside the country, a hidden industrial appetite is turning public electricity into private profit.

In Salto del Guairá, ANDE's monitoring flagged an unmetered load on a medium-voltage feeder. Inspectors and authorities found 2,738 mining computers connected to transformers totaling 7,150 kVA. One transformer alone was rated at 3,150 kVA. ANDE estimated monthly losses of 1.096 billion guaraníes. The site sat in a nation known for surplus hydropower.

These machines, called ASICs, run continuously and usually draw two to three kilowatts each. Multiply that demand by thousands, and farms reach megawatt scale. ANDE documented two paths to free power: a direct connection that bypasses the meter, or a meter altered to undercount. In Hernandarias, 749.5 kilowatts recorded became 2,151 in actual load.

But those numbers cannot be assigned so neatly. ANDE's nearly one-third loss figure covers the distribution network, including illegal connections generally. It is not a crypto-mining total. The evidence does not support claim that mining consumes 30 percent of generation or a 2029 blackout. Investigators are examining help from ANDE employees or contractors. That suspicion remains unproven. It does not demonstrate a coordinated theft network.

A court decision in Minga Guazú shows where responsibility may reach. In June 2026, a tribunal gave Cristian Daniel Jara Villalba and Ramón Martínez Morínigo suspended two-year sentences for illegal energy subtraction. It also held the registered meter holder responsible for activity on the property. The case pushes accountability beyond machine operators, toward the access that makes theft possible.

Paraguay's problem is not a shortage of generation. It is the gap between abundant power at the source and control where that power enters the grid.

On The Calibre Brief from Calibre Code USA, should Paraguay first imprison operators, recover losses from meter holders, or resolve possible insider complicity? Comment with a view. Like and subscribe on YouTube, and follow the podcast.