Bitcoin mining centers are appearing in more and more countries. In Europe, Norway is at the forefront, as it has abundant energy reserves and the regulatory environment is very favorable.
Bitcoin mining in Norway takes advantage of the abundant energy from hydroelectric power plants. As a result, multinational companies such as Bitfury, COWA, Bitzero and Bitdeer have appeared in the Nordic country. Additionally, local companies include Kryptovault and Arcane Green Data.
As Europe’s largest producer of hydropower, Norway has abundant renewable energy, which is also cheaper compared to the prices of neighboring countries. 92% of the country’s electricity comes from hydropower, and 7% from wind power.
On January 25, Jaran Mellerud, Norwegian citizen of HashRate Index, explained why the country has become the European center for bitcoin mining.
According to the researcher’s estimate, bitcoin mining in Norway consumes regarding 250 megawatts of energy. “This energy consumption represents a nearly 3% Norwegian share of global hash rate production” he declared Mellerud.
Bitcoin miners operate in the central and northern parts of the country, as energy is more expensive in the more populous south. The Norwegian grid operator estimates that electricity prices will remain at a low level until 2027.
However, the government is not a fan of mining, this year it raised the electricity tax for miners by $0.014/kWh. Nevertheless, in May 2022, the Norwegian parliament rejected a bill aimed at banning bitcoin mining by a majority vote. Norway is not a member of the European Union, so the severe restrictions of the Markets in Crypto Assets (MiCA) regulations proposed by the EU would not apply to miners operating in the country.
In light of all these factors, Mellerud came to the conclusion:
“Bitcoin miners probably have at least five good years left in a stable country with low electricity prices and excellent operating conditions.”