Cryptocurrency mining is one of several energy-intensive industries affected by Iceland’s power shortage. After cutting off supplies to aluminum smelters and fish factories, the country’s major utility companies are now rejecting requests to connect new coin minting facilities to the grid.
Iceland rejects new crypto miners to solve energy shortage
Landsvirkjun, Iceland’s largest utility company, was forced to restrict energy supply to power-consuming industrial customers, including aluminum producers and fish processing plants. These restrictions also apply to consumers whose short-term contracts can be reduced. The data center that mines digital currency is one of the affected companies, which has been rejecting new Bitcoin miners.
Landsville Army According to Bloomberg News, the need for reduction is explained by the failure of power stations and low reservoir water levels. Suppliers also face delays in purchasing power from external producers. The utility company announced on Tuesday that the cuts will take effect immediately.
Tinna Traustadottir, Landsvirkjun’s executive vice president of sales and customer service, pointed out that unusually high power demand is another key factor in the deficit. For decades, Iceland’s large smelters have been the main consumers, but more and more cryptocurrency miners are attracted by the island’s cheap energy and are now also playing a role.
Canadian Hive Blockchain Technologies and Hong Kong-listed crypto mining companies such as Genesis Mining and Bitfury Holding already operate coin minting facilities in the country. However, Landsvirkjun stated that it has now rejected requests from new customers in the mining industry.
The company further elaborated that due to restrictions in Iceland’s power distribution system, it was unable to provide services to the load point of Karahnjukavirkjun, the country’s largest power station. The factory is located in the eastern part of the country, while the western part of the island is mainly in deficit areas.
Before the news of Iceland’s power shortage problem, two other Nordic countries, Sweden and Norway, expressed concern about rising energy demand and the increasing impact of cryptocurrency mining on the environment. In November, Swedish regulators called for a ban on cryptocurrency mining within the European Union.A few weeks later, the Norwegian government Indicated It may support Swedish proposal.
Do you think Iceland will lift restrictions on new crypto mining farms after solving the current power shortage? Tell us in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. The company or the author is not directly or indirectly responsible for any damage or loss caused or claimed to be caused by using or relying on any content, goods or services mentioned in this article.