In a significant move for both the cryptocurrency and energy sectors, Brazil’s Foreign Trade Council has waived import tariffs on high-efficiency Bitcoin mining hardware that utilizes SHA256 algorithms, operates above 200 terahashes per second, and consumes less than 20 joules per terahash. Just three days after this decision, French state-owned energy company Engie announced it is evaluating the use of its 895-megawatt Assu Sol solar power plant in northeastern Brazil for Bitcoin mining. The initiative aims to turn surplus electricity into revenue and enhance the profitability of the solar facility.
Renewable Energy Curtailment and Bitcoin Mining’s Role
As renewable energy generation has expanded across Brazil, the country’s grid has faced growing “curtailment” issues—where surplus electricity cannot be fed into the network due to transmission constraints. Between October 2021 and September 2025, wind farms alone are projected to lose around 32 terawatt-hours of potential output, translating to nearly 6 billion reais (about $1.2 billion) in lost revenue. Northeastern regions, rich in sunlight, are especially affected because inadequate transmission lines hamper effective power distribution. Here, Bitcoin mining steps in as a flexible demand option, enabling otherwise wasted electricity to be monetized without straining the grid.
Impact and Scope of the New Tariff Policy
The tariff exemption, introduced as Resolução GECEX 861, is strictly limited to advanced ASIC hardware meeting precise technical benchmarks. While other tax obligations still apply, eliminating the customs duty removes a substantial cost. This measure is set to remain in force until January 31, 2028, ensuring that only cutting-edge, energy-efficient equipment qualifies. As a result, mining firms can now significantly lower their upfront hardware costs, creating room for fresh investments operating at a professional scale.
Economic Dynamics and Electricity Pricing
In Brazil, the sustainability of Bitcoin mining hinges on hardware efficiency, Bitcoin’s market price, and the local electricity tariff. For example, a device running at 200 terahashes per second and below 20 joules per terahash yields roughly $6.81 daily while consuming 96 kWh. At an electricity price of about $0.071 per kWh (370 reais per megawatt-hour), miners typically break even. Since retail electricity prices are usually too high for mining, operators are increasingly sourcing surplus power directly from plants that would otherwise waste this energy due to curtailment.
Pilot Projects, Future Expansion, and Existing Barriers
Engie’s consideration of mining operations at the Assu Sol facility stands out as one of the first such efforts by a traditional energy player in Brazil. The company has emphasized that any rollout will be gradual, primarily technical, and likely to span several years. Other renewable producers are reportedly exploring similar options. However, Brazil’s banking framework and the high cost of capital can make financing innovative mining projects a challenge, and abrupt shifts in grid or production conditions could directly impact mining performance.
The existing legal framework for Bitcoin and the underlying banking infrastructure in Brazil provide a reasonably supportive environment for large-scale mining. However, if investments in transmission lines accelerate, curtailment rates could fall, reducing Bitcoin mining’s economic appeal in the renewables sector. Furthermore, the possibility that the customs duty waiver might not be extended after 2028 introduces an element of uncertainty for prospective investors.
Limitations and Prospects Going Forward
While the tariff cut simplifies initial hardware acquisition, it does not insulate miners from future financial and operational fluctuations. For mining ventures in Brazil to succeed, access to both domestic and international financing sources—as well as stable energy supplies—remains crucial. The path from pilot programs to full deployment will likely be shaped by technical readiness and bureaucratic processes.
In summary, Brazil has opted not for a sweeping national Bitcoin mining strategy but for a targeted opening that benefits investors with access to advanced equipment. The ultimate direction of this dynamic will be determined by evolving energy markets, hardware availability and pricing, and the pace with which stakeholders bring projects online.
