Key facts:
-
After three years, KryptoVault closed its facilities in the town of Stokmarknes, Norway.
-
The BTC Mining center had an annual consumption similar to that of 3,200 households in this region.
Following the closure of a mining facility in Bitcoin/” target=”_blank” rel=”noreferrer noopener”>bitcoin (BTC) in a village in Norway, Citizens will pay 20% more in electricity ratesThis is because the excess energy released by the closure of the mining company will have to be dealt with by the inhabitants of this location.
This happened in Stokmarknes, a small town of about 3,500 inhabitants, located on the island of Hadsel, off the northern coast of Norway. There, the company KryptoVault operated a crypto exchange center. bitcoin mining for three years.
Mining equipment, being connected all the time to an electricity source, not only consumes a lot of energy, but They generate a lot of heatwhich can harm the performance and longevity of the devices. To maintain these installations A cooling system is necessary to manage to calm the temperature and keep it at a low level.
Since its implementation, Stokmarknes residents have filed complaints about noise caused by the KryptoVault mining facility. In particular due to the ventilation system with industrial fans used to extract heat from the premises where the devices were operating. As a result, last week the municipality decided not to renew the company’s operating permit, so it had to close its doors.
KryptoVault’s Bitcoin mining plant in Stokmarknes on the northern coast of Norway. Source: NRK.
The energy surplus that the Bitcoin mining company is not currently consuming will impact the rates of the residents of this Norwegian town, who will pay the extra 20% starting next month.
In this regard, the mayor of the city, Kjell-Børge Freiberg (son), explained that the distribution of surplus energy to the rest of the citizens is linked to a national regulation of the electrical system outside of his competence. In addition, he announced that they are looking for new projects that can take on the energy surplus left after the closure of the BTC mining company to mitigate the costs for citizens.
Why do electricity companies increase their rates??
When a large customer suddenly stops using electricity, Total energy demand decreases, but fixed costs do not of the company offering the service.
In order to cope with the same levels of production without their main customer, power companies often increase rates for others. This is because power plants operate more efficiently when they have a constant and high demand, allowing them to make the most of their infrastructure.
The departure of a major client can disrupt that stability, resulting in increased costs. per unit of energy due to loss of operating efficiency.
Another answer could be linked to the fact that large consumers often have special contracts with reduced rates due to their high consumption volume. If these customers leave, the electricity companies could be forced to readjust the rates for the rest of the users, thus compensating for the decrease in their income.
The local media that reported this situation reported that the annual consumption of this bitcoin mining center was 80 gigawatts per hour (GWh) per year. This is equivalent to the annual consumption of around 3,200 households in this region.
Each household spent an average of 12,000 to 13,000 Norwegian kroner a year, which is equivalent to approximately 1,100 dollars. With this increase, they will pay around 2,500 to 3,000 Norwegian kroner more, according to the report.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.