  We develop a new model of the fluctuation dynamo in which the magnetic field
is confined in thin flux ropes advected by a multi-scale flow modeling
turbulence. Magnetic dissipation occurs only via reconnection of the flux
ropes. We investigate the kinetic energy release into heat, mediated by the
dynamo action, both in our model and by solving the induction equation with the
same flow. We find that a flux rope dynamo is an order of magnitude more
efficient at converting mechanical energy into heat. The probability density of
the magnetic energy release in reconnections has a power-law form with the
slope -3, consistent with the Solar corona heating by nanoflares.
