Bitcoin mining shutdown causes 20% increase in electricity bills

The closure 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 its permit due to noise complaints.

Kryptovault operated the mining facility for 20% of the revenue of local power company Noranett. With the loss of its biggest customer, Noranett is raising household prices to compensate.

Locals had complained for years about the noise produced by the mine’s cooling fans. However, because of the shutdown, residents are now faced with paying several hundred dollars more per year for electricity.

“When such a large individual customer stops overnight, it has an impact,” said a Noranett manager. The company estimates that bills could increase by as much as $300 a month.

Although unhappy about the price hike, Hadsel’s mayor said the municipality must deal with the consequences of losing a major energy consumer in accordance with 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 distributing network expenses to a larger customer base. The continued operation of the Bitcoin mine would have prevented the increase in citizen rates.

The incident has fueled debate in Norway about imposing restrictions on energy-intensive mining. This could force miners to move their operations overseas and further increase prices for residents.