Bitcoin Mining In Hadsel Is Closed, Due To A Surge In Electricity Tariffs For Residents

JAKARTA - The closure of Bitcoin mining facilities in Hadsel, Norway, has triggered an increase in electricity costs of up to 20% for local residents. The facility operated by Kryptovault was forced to stop its operations after their extension permit was rejected by local governments due to noise complaints from local residents. This facility previously accounted for 20% of the local energy company's revenue, Noranett.

The closure of Bitcoin mining facilities in Hadsel came after local authorities refused to update the facility's operating license due to noise complaints from local residents. The facility uses a cooling system that causes high noise, disrupting the comfort of local residents. Although many residents support this closure, the impact on the local economy is significant.

With the loss of their biggest customer, Noranett decided to increase the price of electricity to cover the shortfall in revenue. Hadsel residents are now facing electricity bills that increase by several hundred dollars per year. Quoted from Cointurk, a manager from Noranett explained, "The loss of large customers overnight certainly has a major impact on our income."

Mayor Hadsel stated that local governments need to manage the impact of large energy consumer losses like this, in accordance with the prevailing regulatory framework. Currently, the government is looking for new projects to take advantage of the excess energy capacity available. The case also shows that Bitcoin mining operations can actually help reduce electricity costs by dividing network costs among more users, which may prevent an increase in tariffs for residents.