Town Seeks Solutions After Bitcoin Mine Closure Causes $300 Increase in Power Bills

The Bitcoin mine was responsible for about a fifth of the electricity consumption of Noranett, the local power distributor.

The closure of a Bitcoin mine in Hadsel, Norway, has led to a sharp increase in electricity bills for residents in the town. The mine, which was shut down during the week of September 9th, reportedly accounted for a significant portion of the electricity consumption in the area.

According to local officials, the decision to close the mine was made following complaints from residents about noise pollution. Hadsel, which has a population of 8,236, had seen growing activism against the mine in recent years.

However, the closure has also had several financial repercussions for both businesses and individuals in the town.

Bitcoin Mine Closure Leads to $300 Increase in Power Bills for Residents

The Bitcoin mine in Hadsel was said to have utilized around 20% of the electricity distributed by Noranett, the local power company. With the closure of the mine, Noranett has lost a substantial source of revenue.

To compensate for this loss, the company has had to increase electricity tariffs, which has resulted in a significant rise in electricity bills for residents. According to reports, the average increase in electricity costs for households in Hadsel is around $300 per month.

"We noticed the loss when a large customer disappeared overnight," said Robin Jakobsen, network manager at Noranett. "The average cost impact per household year will be 2500-3000 Norwegian krone ($235-$280)."

Highlighting the impact of Bitcoin mining on electricity costs, Daniel Batten, a climate tech venture capitalist, noted that such scenarios demonstrate how mining can contribute to affordable electricity rates for everyday consumers.

"A Bitcoin data center uses around 80 GWh of electricity per year, which is the same as around 3,200 households per year," explained Batten.

Commenting on the rising electricity costs, Kjell-Børge Freiberg, mayor of Hadsel, stated that the town would be exploring new projects that could minimize electricity usage to help mitigate the impact on residents.