Norway town sees electricity costs rise after Bitcoin mine closure

Residents of Hadsel, a town in Norway, are experiencing a 20% increase in their electricity bills following the closure of a local Bitcoin (CRYPTO:BTC) mining center. 

The shutdown was a result of a long-standing campaign by residents, led by Mayor Kjell-Børge Freiberg, to address noise disturbances caused by the mining operations. 

However, the closure has created financial challenges, as the mining facility accounted for about 20% of the income for the electricity distribution provider Noranett.

Robin Jakobsen, Noranett’s network manager, highlighted the financial impact of the mine's closure, stating, "When such a large individual customer switches off overnight, it has an impact." 

He estimated that the average household in Hadsel will see an additional annual cost of approximately 2,500 to 3,000 Norwegian krone, equivalent to about $235 to $280 USD. 

The data center previously consumed around 80 gigawatt hours (GWh) of electricity per year, which is comparable to the annual consumption of 3,200 households.

The decision to shut down the mine has drawn criticism from some quarters. 

Climate tech venture capitalist Daniel Batten commented on social media, “When politicians gaslight Bitcoin, the people suffer.” 

He argued that Bitcoin mining can help keep power prices lower for local residents by contributing significantly to the power grid’s revenue.

Despite the economic ramifications, the mayor stated that the town is exploring new projects to compensate for the loss of electricity consumption following the mine’s closure. 

This is not the first instance in Norway where residents have raised concerns about noise from Bitcoin mining. 

Similar complaints were reported in Sortland in September 2022. 

Kjetil Hove Pettersen, CEO of KryptoVault, suggested that such complaints often receive more media attention than supportive local opinions.

At the time of reporting, the Bitcoin (BTC) price was $60,200.01.