Bitcoin Mining Shutdown Cause 20% Hike in Electricity Bills

The closure of a Bitcoin mining operation in Hadsel, Norway, could reportedly lead to an estimated 20% increase in household electricity costs.

According to a report by the Norwegian Broadcasting Corporation (NRK), the Stokmarknes Datasenter Bitcoin mining facility ceased operations after Hadsel’s authorities refused to renew the company’s temporary permit.

Norwegian City Learns The Importance of Bitcoin Mining

The municipality initially granted the permit three years ago, but residents’ complaints about noise from the cooling fans led to its non-renewal. While many locals supported the shutdown, the decision affected Noranett, the area’s electricity provider.

The mining facility accounted for 20% of its revenue. Noranett expects a significant rise in local electricity bills to compensate for the loss.

Robin Jakobsen, Noranett’s network manager, explained that losing a major customer like the mining facility forces price increases. He estimated that other households would see a 20% increase in their bills, amounting to as much as $300 by next month.

Read more: Bitcoin Mining From Home: Is It Possible in 2024?

Following the news, market experts highlighted the impact of BTC mining on the local economy. Pierre Rochard, Vice President of Research at Riot Platforms, noted that Bitcoin miners often reduce electricity costs by distributing the grid’s fixed costs across a broader base of users.

Bitcoin environmental analyst Daniel Batten echoed this view, arguing that the fee hike is another example of how Bitcoin mining keeps energy costs down.

“Yet another datapoint showing how Bitcoin mining keeps power prices lower for everyday people,” Batten emphasized.

Batten further pointed out that Texas grid operators and peer-reviewed studies support the claim. He criticized politicians for disregarding the benefits of Bitcoin mining, saying it ultimately harms the public.

Read more: How Much Electricity Does Bitcoin Mining Use?

Norwegian Bitcoin writer Alexander Ellefsen expressed frustration over the government’s lack of support for using Bitcoin mining to tap into the country’s surplus energy. He highlighted that 97% of Norway’s electricity comes from renewable sources, primarily hydropower. During off-peak hours, excess water from Northern hydropower dams often goes to waste due to low demand.

“It’s perplexing to see how some politicians continue to overlook Bitcoin mining as a potential solution. By utilizing this surplus renewable energy, we could support the Bitcoin network while ensuring better energy efficiency and reducing waste,” Ellefsen added.