- A Norwegian town is expected to see a 20% increase in electricity bills following the closure of a bitcoin mining facility
- The shutdown occurred after the local municipality refused to renew the mining company’s expired permit
- The mining site had been the largest customer of the local energy provider, leading to higher costs for other consumers
Residents of Stokmarknes, Norway, celebrated the closure of a bitcoin mining facility this week, but their joy has been short-lived after they faced a sharp rise in their electricity costs. The shutdown happened after the Hadsel municipality decided not to renew the company’s operating permit due to noise complaints, but with the facility gone, local energy customers are expected to see a 20% hike in their power bills. The rise is due to the facility previously being responsible for a significant share of the region’s energy revenue.
Residents Cheer Shutdown
According to local media, the bitcoin mining facility, run by Kryptovault, ceased operations over the weekend after the Hadsel municipality refused to renew the company’s temporary permit. The permit, originally granted three years ago, had led to growing frustration among local residents due to the noise generated by the facility’s cooling fans.
Noise from bitcoin mining operations is something that has plagued the sector as it has expanded. In 2018, residents and officials from Plattsburgh, NY, voted in favor of imposing a new set of regulations on the crypto mining industry, capping the noise levels at no louder than 90 decibels at a distance of 25 meters.
In order to find a solution, many bitcoin mining farms are switching to liquid cooling which is far less noisy, but the vast majority still use air cooling, leading to a persistent buzz as the fans cool the ASIC mining machines.
Lower Noise Pollution, Higher Bills
Following the complaints, Kryptovault’s license was not renewed, leading to the fans falling silent over the weekend. However, any joy that residents might have had at being able to hear the birds again was short-lived when it was revealed that they would foot the bill.
Kryptovault was the largest customer of Noranett, the regional energy company, contributing 20% of its revenue. With the mining operation now closed, the financial burden of maintaining the energy infrastructure will fall on the remaining customers. A Noranett representative confirmed that local energy bills are expected to rise by 20% as a direct result of the mining site’s closure, with the increase taking effect as early as next month.
Hadsel’s mayor, Kjell-Børge Freiberg, acknowledged the impact on the community but emphasized that this is how the energy system operates. He assured residents that the municipality is actively seeking new industrial projects to make use of the excess power now available. Freiberg noted that while finding a solution may take time, the administration is committed to supporting future business development in the area.
