Norwegian Town Protests Bitcoin Mine Closure, Faces Rising Electricity Costs

Residents of Hadsel, a municipality in Norway, are experiencing a significant rise in electricity costs following the recent closure of a local Bitcoin mining operation. The estimated additional annual expense for the average household is around $280 USD, according to the Noranett network manager.

Concerns Over Noise Disturbance

Kjell-Børge Freiberg, the Mayor of Hadsel, mentioned that the noise from the Bitcoin mining facility had been disruptive to many residents in a town with a population of about 8,236, as reported by the Norwegian Broadcasting Corporation (NRK). With the mine shutting down in early September, local communities that had campaigned for its closure are now facing the repercussions of this decision.

The mining operation, which accounted for approximately 20% of Noranett’s revenue, has led to increased electricity fees for residents to balance the financial loss. According to Robin Jakobsen, the Noranett network manager, the abrupt cessation of such a large consumer has significant consequences.

Impacts of Bitcoin Mining on Energy Prices

Climate tech venture capitalist Daniel Batten noted that the situation illustrates how Bitcoin mining can contribute to keeping energy costs lower for consumers. The data center involved consumed about 80 gigawatt hours (GWh) of electricity annually, which is roughly the equivalent of what 3,200 households use in a year.

Freiberg indicated that the local government would explore alternative projects to compensate for the energy output lost due to the mining center’s closure.

Community Responses to Bitcoin Mining Operations

This incident is not unique to Hadsel; other towns in Norway have also expressed concerns about the presence of Bitcoin mining facilities. In September 2022, residents in Sortland raised similar complaints regarding noise disturbances from Bitcoin mining activities.

Kjetil Hove Pettersen, CEO of KryptoVault, suggested that media portrayals often focus on negative sentiments surrounding the industry, which may not reflect the broader community perspective.

In a related development, a bill aimed at imposing noise restrictions on crypto mining operations has passed in Arkansas and is pending approval from Governor Sarah Huckabee Sanders, who has expressed intentions to sign it into law.