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.<\/p>\n
Landsvirkjun operates 28 power stations powered by renewable energy.<\/p>\n
Vice-president of sales and customer service Tinna Traustad\u00f3ttir explained that the shortage affected businesses in the southwest of the country.<\/p>\n
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.<\/p>\n
The company’s largest customers are aluminium smelters \u2014 one of the most energy-intensive metals in production. The plants were established in the country several decades ago owing to low electricity tariffs.<\/p>\n
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.<\/p>\n
Traustad\u00f3ttir stressed that the restrictions took effect on December 7, and all electricity-supply requests from new mining clients are now being rejected.<\/p>\n
Like Sweden and Norway, Iceland is a popular destination for crypto mining due to low electricity prices and abundant renewable energy.<\/p>\n
In 2021, attention to the environmental impact of Bitcoin mining intensified. Tesla suspend BTC acceptance<\/a> as payment for electric cars three months after opening the option<\/a> \u2014 the company cited the carbon footprint of Bitcoin.<\/p>\n Earlier, regulators in Sweden proposed banning Bitcoin mining<\/a> in the European Union because of its energy-intensive nature.<\/p>\n The Norwegian government said it would consider the initiative of its Swedish colleagues<\/a>.<\/p>\n