The closing 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 closed after the municipality refused to renew the permit due to complaints about noise pollution.
Kryptovault operated the mining facility for 20% of local energy company Noranett’s revenue. With the loss of its largest customer, Noranett is raising prices for households to compensate.
Locals have complained for years about the noise from the mine’s cooling fans, but the closure means residents will now have to pay hundreds of dollars more per year for electricity.
“When a large individual customer like that switches overnight, it has an impact,” said a Noranett executive, who estimates that bills could increase by as much as $300 a month.
Although unhappy about the price increases, Hadsel’s mayor said the city must address the consequences of losing a major power consumer under the regulations. He said the city is now looking for new projects to utilize the excess energy capacity.
The situation shows how Bitcoin mining can help reduce costs electricity costs by distributing the network costs over a larger customer base. Continuing the Bitcoin mine would have prevented the price increase for citizens.
The incident has sparked debate in Norway on imposing restrictions on energy-intensive mining. This could force miners to move their operations offshore and further increase prices for residents.