Amid a power shortage in Iceland, state-owned Landsvirkjun has cut supplies to some large customers, including aluminium smelters and data centres. The company is also turning away all new applications from Bitcoin miners, Bloomberg reports.
Landsvirkjun operates 28 power stations powered by renewable energy.
Vice-president of sales and customer service Tinna Traustadóttir explained that the shortage affected businesses in the southwest of the country.
The shortage arose from a number of problems, including low reservoir levels, a malfunction at one plant, and delays in supplies from a third-party contractor. She added that demand was also at a record high.
The company’s largest customers are aluminium smelters — one of the most energy-intensive metals in production. The plants were established in the country several decades ago owing to low electricity tariffs.
Cryptocurrency miners have become part of Iceland’s industrial landscape in recent years. Among those operating farms on the island are HIVE Blockchain Technologies, Genesis Mining and Bitfury Holding.
Traustadóttir stressed that the restrictions took effect on December 7, and all electricity-supply requests from new mining clients are now being rejected.
Like Sweden and Norway, Iceland is a popular destination for crypto mining due to low electricity prices and abundant renewable energy.
In 2021, attention to the environmental impact of Bitcoin mining intensified. Tesla suspend BTC acceptance as payment for electric cars three months after opening the option — the company cited the carbon footprint of Bitcoin.
Earlier, regulators in Sweden proposed banning Bitcoin mining in the European Union because of its energy-intensive nature.
The Norwegian government said it would consider the initiative of its Swedish colleagues.
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