Key Takeaways
- A Bitcoin mining closure in Norway is leading to a 20% rise in electricity costs.
- The facility was shut down due to noise complaints from local residents.
- Experts argue that Bitcoin mining could help lower electricity costs.
The closure of a Bitcoin mining facility in Hadsel, Norway, is projected to lead to a 20% spike in household electricity costs.
The facility, run by Stokmarknes Datasenter, was forced to cease operations after local authorities refused to renew its permit due to noise complaints from residents.
Local reaction
While some locals welcomed the shutdown, it has severely impacted the area’s electricity provider, Noranett.
The mining facility accounted for 20% of Noranett’s revenue, and the company now expects the cost increase to affect households as early as next month.
Robin Jakobsen, Noranett’s network manager, estimated that the average household could see bills rise by up to $300.
Economic impact
Experts have weighed in on the economic implications of Bitcoin mining.
Pierre Rochard, Vice President of Research at Riot Platforms, explained that Bitcoin miners help lower electricity prices by distributing grid costs over a broader user base.
Similarly, Bitcoin environmental analyst Daniel Batten criticized the decision, noting:
Yet another datapoint showing how Bitcoin mining keeps power prices lower for everyday people.
Local Bitcoin writer Alexander Ellefsen also expressed disappointment in the government’s failure to harness the country’s surplus energy through Bitcoin mining.
He highlighted that 97% of Norway’s electricity is generated from renewable sources like hydropower, much of which goes unused during off-peak hours.
