Norway town campaigns to close Bitcoin mine, electricity costs jump 20%

Residents of Hadsel, a Norwegian municipality, who pushed to shut down a local Bitcoin mine, are now facing a spike in their electricity bills due to the lost revenue for the local power company.

“When politicians gaslight Bitcoin, the people suffer,” Climate tech venture capitalist Daniel Batten opined in a Sept. 13 X post following the news.

Hadsel residents say the noise was disturbing lifestyle

Mayor of Hadsel, Kjell-Børge Freiberg, told the Norwegian Broadcasting Corporation (NRK) on Sept. 13 that the noise from the Bitcoin (BTC) mining center was disturbing many residents in Hadsel — which has a population of around 8,236 people, according to City Population data.

The operation was shut down during the week of Sept. 9. While many residents were initially pleased after campaigning for several years to close it, the mine’s closure — representing around 20% of electricity distribution provider Noranett’s income — means local electricity bills will rise to compensate for the lost revenue.

“When such a large individual customer switches off overnight, it has an impact,” Noranett network manager Robin Jakobsen stated.

He estimated that, following the adjustment, the average household in Hadsel could face an additional annual cost of between NOK 2,500 and 3,000 (equivalent to roughly $235 to $280 USD).

Batten argued this is “another example of how Bitcoin mining helps keep power prices lower for everyday people.”

The data center consumed about 80 gigawatt hours (GWh) of electricity annually, equivalent to the yearly usage of around 3,200 households.

Freiberg stated that the town would seek new projects to offset the reduced electricity consumption following the mining center’s closure.

Noise complaints over Bitcoin miners in Norway

It isn’t the first town within Norway to have complaints about Bitcoin mining facilities.

In September 2022, Cointelegraph reported that locals in Sortland, another Norwegian municipality, were complaining about the noise of Bitcoin mining activity in the area.

Related: Bitcoin miner solves block alone, grabs $180,000 reward

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