Residents of Hadsel, a municipality in Norway, successfully campaigned to close a local Bitcoin mining operation, but they are now facing increased electricity costs due to the loss of revenue for the local power company.
Following the news, climate tech venture capitalist Daniel Batten remarked in a Sept. 13 X post, “When politicians gaslight Bitcoin, the people suffer.”
Hadsel’s mayor, Kjell-Børge Freiberg, told the Norwegian Broadcasting Corporation (NRK) on Sept. 13 that many residents, in the town of around 8,236 people, were disturbed by the noise from the Bitcoin mining facility. The operation was shut down in the week of Sept. 9, a decision that initially pleased residents after years of complaints.
However, the mine’s closure, which accounted for about 20% of local electricity provider Noranett’s revenue, has led to rising electricity bills. Robin Jakobsen, Noranett’s network manager, estimated that households could see an additional annual cost of NOK 2,500 to 3,000 (roughly $235 to $280 USD) as a result.
“When such a large individual customer switches off overnight, it has an impact,” Jakobsen stated.
Bitcoin Mining’s Impact on Power Prices
Daniel Batten argued that this is “another example of how Bitcoin mining helps keep power prices lower for everyday people.” The data center consumed approximately 80 gigawatt hours (GWh) of electricity per year, equivalent to the usage of around 3,200 households.
In response to the mine’s closure, Mayor Freiberg mentioned that the town is seeking new projects to offset the reduced electricity consumption.
Ongoing Noise Complaints in Norway
Hadsel is not the first Norwegian municipality to face issues with Bitcoin mining. In September 2022, residents of Sortland also voiced complaints about the noise from local mining operations. Kjetil Hove Pettersen, CEO of KryptoVault, commented that media coverage tends to amplify negative opinions, which may not represent the views of the entire community.
Meanwhile, in the U.S., a bill to impose noise limits on crypto mining farms has passed in Arkansas, awaiting Governor Sarah Huckabee Sanders’ signature.
