The closure of a Bitcoin mining facility in the Norwegian town of Hadsel has led to a 20% increase in electricity bills for residents. The mine was shut down after the municipality refused to renew its license due to noise complaints.
CryptoVault ran the mining facility for 20% of local energy company Noranit’s revenue. With the loss of its biggest customer, Noranit is raising prices for households to compensate.
Locals have been complaining for years about the noise from the mine’s cooling fans. But because of the closure, residents are now forced to pay hundreds of dollars more a year for electricity.
“When such a large individual customer cuts service overnight, it has a huge impact,” said Noranit’s director, who estimates bills could rise by as much as $300 a month.
While he was unhappy with the price hike, Hadsell’s mayor said the city must deal with the consequences of losing a major energy consumer under the regulations. He said the city will now seek new projects to take advantage of the excess capacity.
This situation highlights how Bitcoin mining can help lower electricity costs by spreading the network’s costs across a larger customer base. Keeping Bitcoin mining running would have prevented prices from rising for citizens.
The incident has sparked debate in Norway about restrictions on energy-intensive mining. This could force miners to move their operations abroad, and could lead to higher prices for the population.
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