Crypto Farm Shutdown Sparks Soaring Electricity Bills in Norway
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Written by
Yana Levkovich - Updated 2024-09-16 12:19:49
The mining facility operated by Kryptovault in Stokmarknes, Norway, has been shut down, as reported by local news outlet NRK. This decision was made by the Hadsel municipality, which chose not to renew the company's operating permit. The decision followed ongoing noise complaints from residents living near the facility. The mining center had been in operation for nearly three years before this closure.
The primary cause of the noise was the air coolers used in the facility. Hadsel's mayor, Kjell-Børge Freiberg, and other officials pointed out that these coolers were much louder than liquid cooling systems.
Despite Kryptovault's efforts to address the issue by building taller sound barriers and installing soundproofing materials, the noise remained a significant problem. As a result, residents continued to file complaints about the disturbance.
Spike in Electricity Costs
Following the closure, the local energy company, Noranett, announced an increase in electricity rates for residents. The mining facility consumed over 80 GWh of electricity annually, which was about the same amount of energy used by around 3,200 households.
This consumption accounted for 20% of Noranett's revenue. To offset the revenue loss from the facility's closure, Noranett decided to implement a 20% increase in electricity prices for its customers.
Robin Jakobsen, the head of the Noranett network, estimated that the average household would see their yearly electricity bill rise by about 2,500 to 3,000 Norwegian kroner, which is approximately 235 to 280 dollars. Currently, most households pay around 12,000 to 13,000 kroner per year for electricity, so this increase represents a significant hike in costs for residents.
In response to the closure and the resulting economic impact, Mayor Freiberg stated that the municipality is actively seeking new projects to fill the gap left by the mining facility's shutdown. They aim to attract businesses that can use the available energy in a way that benefits the community.
The goal is to ease the financial burden on residents while avoiding similar issues in the future. Mayor Freiberg emphasized the importance of encouraging industries that make positive contributions to the local area without causing inconvenience or disturbance to the people living there.
Responses
Commenting on the news, Daniel Batten, a researcher and co-founder of CH4 Capital, said:
Yet another datapoint showing how Bitcoin mining keeps power prices lower for everyday people.
Brad Jones, the grid operator in Texas said the same thing.
The peer review research says the same thing.
When politicians gaslight Bitcoin, the people suffer.
