Norwegian Town Sees 25% Rise in Power Bills, $300 Increase per Home After Bitcoin Mining Ban

Sep 14, 2024, 12:00 PM

A Norwegian town has experienced a significant increase in electricity rates following the shutdown of a local Bitcoin mining operation. The closure has led to a 25% spike in power bills, translating to an additional $300 per year for each household. The Bitcoin miner previously paid 20% of the area's grid fees, effectively subsidizing the cost for other consumers. The absence of this contribution has resulted in higher electricity costs for residents. This development highlights the role of Bitcoin mining in stabilizing energy prices by distributing fixed grid costs over a larger rate base. Brad Jones, the grid operator in Texas, has made similar observations about Bitcoin mining's impact on energy prices.