Norwegian Government Intention to Eliminate Electricity Subsidies for Mining Enterprises

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The largest local news publication, Aftenposten, reported on November 21 that the Norwegian government intends to stop paying electricity subsidies to companies involved in Bitcoin mining.

In accordance with existing regulations, mining companies, as well as other large enterprises, are required to pay $ 0.05 per kilowatt of electricity. Starting January 1 of the next year, this tariff will grow by almost 35%. A radical supporter of this decision, the parliamentary representative of the Socialist Left Party (SV) Lars Haltbrekken said:

“Norway can not continue to provide huge tax incentives for the most dirty form of cryptocurrency output […] [Bitcoin] requires a lot of energy and generates large greenhouse gas emissions globally.”

In accordance with the Forbes statement made this month, the existing feed-in tariffs for electricity in Norway, local cryptocurrency miners, the cost of extracting one coin is about $ 7,700. Such data provided the German company, mining enterprise which is located in Norway.

Aftenposten reported that the national industry group ICT Norway immediately responded to the government’s statement, commenting negatively on the decision. ICT Chief Economist Roger Shierwa protested, saying:

“This is shocking! [To change] framework conditions without discussion, consultation or dialogue with the industry. Norway scores high on rankings of political stability and predictable framework conditions, but now the government is playing a gambling role with its credibility.”

It is worth noting that there are a number of companies operating in the field of Blockchain, supported the decision of the government. The CEO of Blockchangers,  Jon Ramvi, said that “less mining in Norway will reduce the prices of electricity for companies and people residing in Norway, meaning that we reap the benefits of these resources locally instead of giving it away to Bitcoin miners.”

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