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The closure of a bitcoin mining facility in the Norwegian town of Hadsel has led to a 20% increase in residents' electricity bills. The mine was shut down after the municipality refused to renew its permit due to noise complaints.
Kryptovault operated the mining facility and generated 20% of local power company Noranett's revenue. With the loss of its largest customer, Noranett is raising prices for households to compensate.
Local residents had complained for years about the noise produced by the mine's cooling fans. However, because of the closure, residents now face paying several hundred dollars more a year for electricity.
“When such a large individual customer goes off the grid overnight, that has an impact,” said a Noranett manager. The company estimates bills could rise by as much as $300 a month.
Although he is not happy with the price increase, the mayor of Hadsel said the municipality must face the consequences of losing a major energy consumer due to the regulations. He said the city will now look for new projects to use the excess energy capacity.
The situation highlights how bitcoin mining can help reduce electricity costs by spreading network expenses across a broader customer base. Continued bitcoin mining would have prevented increased fees for citizens.
The incident has fueled debate in Norway about imposing restrictions on energy-intensive mining, which could force miners to move operations abroad and may also lead to higher prices for residents.
