Bitcoin Mining Shutdown in Norway Leads to Higher Electricity Bills for Residents

A Bitcoin mining facility in the Norwegian town of Hadsel was forced to shut down by local authorities due to noise complaints. This has resulted in a loss of revenue for the local power company, and residents are now facing potential electricity bill increases of 2,500 to 3,000 Norwegian krone (approximately $235 to $280) per year.

Climate technology venture capitalist Daniel Batten commented on the situation on September 13th in a tweet:

"When politicians gaslight Bitcoin, the people suffer."

Batten's statement highlights the potential consequences of misinformed policy decisions regarding Bitcoin mining. He points out that despite claims from some politicians, Bitcoin mining can actually help lower energy prices for ordinary people.

The Hadsel mayor, Kjell-Børge Freiberg, confirmed that residents had repeatedly complained to the local government about the noise from the Bitcoin mining facility, which disrupted their daily lives. The facility, which consumed approximately 80 gigawatt-hours (GWh) of electricity per year - equivalent to the annual consumption of about 3,200 homes - was shut down on September 9th.

While many residents are relieved after years of protests, the mining facility contributed approximately 20% of the revenue for Noranett, the local power distributor. The shutdown has created a significant revenue gap, leading to the predicted increase in electricity costs for residents.

Robin Jakobsen, the grid manager for Noranett, explained:

"When such a large individual customer stops operating overnight, it will inevitably have an impact."

Mayor Freiberg has stated that the city will be seeking new projects to replace the energy consumption lost from the mining facility's closure.

The situation in Hadsel is not an isolated incident. In September 2022, residents in the Norwegian town of Sortland also complained about noise from a local Bitcoin mining operation.

Meanwhile, in the United States, Arkansas recently passed a bill implementing noise restrictions on cryptocurrency mining facilities. The bill is awaiting approval from Governor Sarah Huckabee Sanders, who has indicated her intention to sign it into law.