Bitcoin mining center in the Hadsel municipality in Norway has finally shut down its operations last week, over noise complaints. However, the closure has spiked residents electricity bill by 20%.
According to a local report, the crypto mining center has been a source of frustration for politicians and neighbours alike. The power-hungry plant had consumed around 80 GWh electricity annually.
“This corresponds to approximately the annual consumption of 3200 households,” the report from the Norwegian Broadcasting Corporation (NRK), read.
Further, the sound of fans running round the clock to cool down the computers, have been a source of great frustration to the neighbourhood.
According to a 2022 report the noise from the crypto facility has led people mad and distraught. However, the company behind the plant defended saying that the noise is below the national limit values.
“There is now a full stop. We are very, very happy with Hadsel,” Kjell-Børge Freiberg, mayor of Hadsel, told NRK. He further said that the data centre has been a nuisance to politicians and neighbours for the past three years.
Bitcoin Mining Shut Down Makes Electricity 20% More Expensive for Locals
The closure of the Bitcoin mining plant has led to an increase in the electricity rent for the residents of the municipality. This is because, the plant accounted for 20% of the income of the local network company Noranett.
Noranett is among the 85 grid companies in Norway, that are tasked with ensuring that electricity is transported from power plants to electricity customers through power lines.
As the crypto mining data centre closed, “it is the remaining electricity customers who have to pay that bill.”
“When such a large individual customer switches off overnight, it has an impact,” Robin Jakobsen, network manager at Noranett, said.
He estimates that, starting next month, a normal household which has been paying NOK 12,000-13,000 ($1130-1225) annually, will have to pay NOK 2,500-3,000 more, after the cease of mining operations.
The mayor noted that the municipality will now hunt for new projects that can take over the electricity left. The mayor hopes that this move would again bring down the electricity bill for online consumers.
“This is how the regulation of our power system is, which lies outside the municipality’s authority and power. We have to deal with that.”
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