YEREVAN (CoinChapter.com) — Ever since Bitcoin (BTC) and other digital assets became popular, crypto miners have been looking for favorable jurisdictions to set up camp. In this regard, Norway, with its reach of renewable energy resources and green power, has become an attractive choice for them.
According to reports, around 90% of Norway’s energy comes from hydropower, with around 8% coming from Wind energy.
The surge of companies with finances to set up quick operations made Norway the biggest Bitcoin (BTC) mining hub in Europe.
However, by the end of 2022, some crypto miners began finding Norway less attractive. This was caused by the sudden surge in electricity prices.
According to Statista, between 2020-2022, Norwegian non-residential electricity consumers experienced an increase in electricity prices due to the global energy crisis.
In 2022, the average price for users with annual consumption between 500 and 2,000 megawatt-hours was slightly less than 18 euro cents per kilowatt-hour (it was 10.06 in 2021). For those with annual consumption between 20,000 and 70,000 megawatt-hours, non-household electricity prices reached 15.43 euro cents per kilowatt-hour (vs 7.8 in 2021).
However, despite the surge in electricity prices, some argue Norway remains an attractive destination for crypto miners.
Should Bitcoin Miners still head to Norway?
Bitcoin mining expert Jaran Mellerud continues to make a strong case for people to invest in Norway. The founder of Miner Metrics is one of the most vocal advocates of the crypto-mining industry.
He has tirelessly promoted Norway, Sweden, and Finland as the best possible places to start Bitcoin mining.
In a recent post on social media platform X, Mellerud cited recent developments in the country that can attract investors.
According to him, there is enough hydropower being wasted due to surplass that can be used to mine cryptocurrencies.
“We urgently need more bitcoin miners to come to Northern Norway. In 2022, my local energy producer dumped 340 GWh of water due to too high reservoir levels. This wasted power could have generated 1,800 BTC,”
he wrote.
He believes Norway’s energy prices are still favorable for investors.
Norway will continue to rely on renewable energy for many years. According to a report by Norwegian analytics and research company Arcane Research, hydropower and wind energy will dominate the landscape at least until 2040.
This makes the country an attractive option for those who hope to jump into crypto mining. However, with the next Bitcoin halving due in April 2024, mining may not look as attractive as it was years back.
