The closure of the mining farm managed by Kryptovault in Norway has resulted in a 20% increase in electricity bills for residents.
According to local news outlet NRK, the mining facility operated by Kryptovault in Stokmarknes, Norway, has been closed. This decision was made by the municipality of Hadsel, which refused to renew the company’s operating permit following persistent noise complaints from local residents living near the facility. The center had been operational for about three years.
For Hadsel’s mayor, Kjell-Børge Freiberg, and other local officials, the primary source of noise was the air coolers used by the facility, which were noisier than liquid cooling systems. Despite the company’s efforts to mitigate the noise by building higher sound barriers and adding soundproofing materials, residents continued to file complaints.
Increase in electricity costs
Following the closure of the facility, the local energy company Noranett announced an increase in electricity bills for residents. The mining farm accounted for 20% of Noranett’s revenue, consuming over 80 GWh of electricity per year, equivalent to the energy needs of about 3,200 households. To compensate for this loss of revenue, Noranett has implemented a 20% increase in electricity prices for its customers.
Robin Jakobsen, head of the Noranett network, predicted that a typical household, which currently pays about 12,000-13,000 Norwegian kroner per year, will see an increase of approximately 2,500-3,000 kroner per year (about 235-280 dollars).
Future plans
In response to the closure and its economic impact, Mayor Freiberg stated that the municipality is actively working to attract new projects to fill the energy demand gap and alleviate the financial burden on residents. Freiberg also emphasized the municipality’s intention to avoid similar issues in the future by encouraging industries that positively contribute to the community without causing inconvenience to residents.
Reactions
Regarding the news, Daniel Batten, researcher and co-founder of CH4 Capital, stated:
