The shutdown of Bitcoin mining will result in a 20% increase in electricity bills

It has been reported that the shutdown of a Bitcoin mining operation in Hadsel, Norway, could increase household electricity costs by approximately 20 percent.

According to a report by the Norwegian Broadcasting Corporation (NRK), the Stockmarks datacenter has stopped mining Bitcoin after Hudsel officials refused to renew the company's temporary license.

The Norwegian city learned the importance of Bitcoin mining

The municipality issued the permit three years ago, but residents' complaints about the fan noise caused it to not be renewed. While many local residents supported the shutdown, the decision affected the local electricity provider Noranet.

The mining facility accounts for 20 percent of the revenue. NoraNet expects a significant increase in local electricity bills to compensate for the loss.

NoraNet network manager Robin Jacobson explained that losing a major customer like the mining facility would force a price increase. He estimated that other households would see a 20% increase in their bills, up to $300 next month.

Read More: Bitcoin Mining From Home: Possible in 2024?

After the news, market experts highlighted the impact of BTC mining on the local economy. Pierre Rochard, vice president of research at Riot Platform, pointed out that bitcoin miners often reduce electricity costs by distributing the grid's fixed costs across a wider user base.

Bitcoin environmental analyst Daniel Batten echoed this sentiment, arguing that the fee increase is another example of how Bitcoin mining can reduce energy costs.

“Yet another data point shows how Bitcoin mining can reduce the cost of energy for everyday people,” Batin emphasized.

Batten noted that Texas grid operators and peer-reviewed studies support the claim. Politicians are criticized for ignoring the benefits of Bitcoin mining, which ultimately harms the public.

Read more: How Much Electricity Does Bitcoin Mining Use?

Norwegian Bitcoin writer Alexander Ellefsen expressed his frustration at the government's lack of support for Bitcoin mining to use the country's surplus energy. He pointed out that 97 percent of Norway's electricity comes from renewable sources, especially hydropower. Excess water from the northern hydropower dams is often wasted due to low demand.

“It's confusing how some politicians see Bitcoin mining as a solution. By using this excess renewable energy, we can support the Bitcoin network while ensuring better energy efficiency and reducing waste, Ellefson added.