In a statement by the Finance Minister, “We are in a completely different situation in the power market now than when the reduced rate for data centers was introduced in 2016...”
The Finance Minister of Norway, Trygve Slagsvold Vedum, has proposed that the Norwegian government eliminates the law which enables crypto data centers to pay lesser electricity fees.
This announcement was made earlier today. The government suggests that crypto firms operating in the country will be subject to the same electricity tax rates as other industries. This policy change might create a significant problem for Bitcoin miners.
According to the Norwegian government, the reduced electricity tax should be discontinued. They stated this is due to the increased demand for electricity in some areas.
In a statement by Vedum, the Finance Minister, he said,
“We are in a completely different situation in the power market now than when the reduced rate for data centers was introduced in 2016. In many places, the power supply is now under pressure, which causes prices to rise. At the same time, we are seeing an increase in cryptocurrency mining in Norway. We need this power for the community.”
Remember that earlier in May, Norway’s Parliament rejected a proposal to ban crypto mining. The country’s Red Party initially introduced crypto mining.
Cambridge Bitcoin Mining Electricity Consumption Index gave a data report. The report shows that Bitcoin mining firms operating in Norway use 100% renewable energy sources. These mining firms also constitute 0.74% of the global Bitcoin hash rate.
However, residents of the Sortland municipality country’s North have been laying complaints about noise pollution from miners.
It is worth knowing that the proposed elimination of reduced electricity tax for miners was made known today following Vedum’s presentation of Norway’s national budget for 2023. He stated that exposing miners to standard electricity tax rates would probably bring in over $14 million in revenue for the country.
