The Norwegian hydroelectric power plants are generating electricity for the Bitcoin network by utilizing renewable energy sources. They have also been able to temporarily shut down some of their fossil fuel-based generators when demand is low, thereby reducing emissions and electric costs at the same time. This means that Norway does not just provide clean water but with its excess capacity it’s now powering computers running a digital currency!
Despite the country’s progressive energy policies, Bitcoin miners in Norway use only renewable energy and have the smallest carbon footprint in the industry, according to a recent report.
Norwegian bitcoin miners use renewable energy exclusively because the country’s industry is climate-conscious, according to a report by Arcane Research.
The colder climate and lenient regulations in the country also benefit miners. Most importantly, it produces some of the cheapest electricity in the world, with 88% of it coming from hydropower.
Norway also uses wind power to generate 10% of its energy needs, while the remaining 2% is generated by natural gas, which is mostly used for offshore oil operations.
The report states:
“The most important takeaway for Bitcoin miners about Norway’s electricity mix is that it is fully renewable and will remain so.”
Norway’s Bitcoin Fever: Inside The Crypto-Currency Hub
Norway accounts for 0.75% of the global Bitcoin hash rate, based on the Cambridge Bitcoin Electricity Consumption Index . Several bitcoin mining giants, as well as smaller companies, have opened offices in the county, including Northern Data, COWA, Bitdeer, and Bitzero.
This is primarily due to low electricity prices in the country, which have averaged between $0.03 and $0.05 per kilowatt-hour in the last five years.
In 2021, prices went as low as $0.01.
In addition, Norway ranks 9th in regulatory lenience and business friendliness worldwide. In addition, energy-consuming businesses like crypto mining companies are taxed at a very low rate in the country. As a result, setting up and running a business in the area is very attractive.
It is expected that the recent mining of the 19 millionth Bitcoin will increase the network’s hashrate in tandem with the increase in computing power required. In tandem with the increase of mining energy requirements, miners are already turning to renewable energy sources.
Norway’s Bitcoin Mining Industry
Several miners are attempting to find ways to benefit the local economy by using the heat generated from their operations. According to a member of Arcane Research:
“Heat is very valuable in the cold north, it allows you to reuse excess heat from cryptocurrency mining and can bring additional benefits to both industry and society.”
The Norwegian data center company Cryptovault uses excess heat from mining to dry lumber.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
