YEREVAN (CoinChapter.com) — Residents in Hadsel, Norway, are now facing increased electricity costs after the shutdown of a local Bitcoin mining facility. The closure of the mine, which accounted for 20% of the income for local electricity provider Noranett, has led to a surge in bills for the town’s households.
Noise Complaints Push for Bitcoin Mine Shutdown
Hadsel’s Bitcoin mining facility was officially closed during the week of Sept. 9. This followed years of complaints from residents, who said the noise from the mine disturbed their daily lives. The town, which has a population of approximately 8,236, had been dealing with these issues for several years.
Hadsel Population Overview . Source: Statistics Norway
According to Mayor Kjell-Børge Freiberg, the constant noise had become a source of distress for many. While the closure addressed these concerns, it also created new challenges, particularly in the form of rising electricity costs.
Electricity Costs Surge After Bitcoin Mine Closure
The closure of the Bitcoin mine led to a significant loss of revenue for Noranett, Hadsel’s local electricity provider. Consuming approximately 80 gigawatt hours (GWh) of electricity annually, the mine’s operations were equivalent to the power usage of 3,200 households. Consequently, this accounted for about 20% of the company’s total revenue.
In fact, Robin Jakobsen, Noranett’s network manager, estimated that the average household in Hadsel could face an additional annual cost of between 2,500 and 3,000 Norwegian krone (approximately $235 to $280 USD). The sudden price increase has left many residents frustrated, even though they initially welcomed the mine’s closure due to the noise issue.
Impact of Bitcoin Mining on Local Communities
The case of Hadsel highlights the broader impact that Bitcoin mining can have on local communities. While the mine’s closure has reduced noise pollution, it has also removed a significant source of revenue for the local energy provider, leading to higher costs for residents.
Bitcoin mining is often seen as an economic driver, but in Hadsel, it created a financial burden following its shutdown. Daniel Batten, a climate tech venture capitalist, commented on Sept. 13 via X, saying,
“When politicians gaslight Bitcoin, the people suffer.”
Batten suggested that the closure of the mine shows how Bitcoin mining helps keep electricity prices lower for ordinary households.
Bitcoin Mining and Power Costs. Daniel Batten
Notably, this isn’t the first instance of such tension in Norway. In September 2022, residents of Sortland, another Norwegian town, raised similar complaints about the noise generated by local Bitcoin mining facilities. Above all, these disputes continue to raise questions about how cryptocurrency mining operations interact with local economies and populations.
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