To date, the most popular region in Europe for the crypto currency miners remains Iceland. However, the cost of electricity in Sweden and Norway is lower, making them more attractive for mining.
The cost of a kilowatt*hour in Iceland is 8 cents, in Sweden 6.5 cents, in Norway 7.1 cents, while the average price in Europe is 11 cents.
The Swedish company Vattenfall [VATN.UL] and Norway’s Statkraft [STATKF.UL] are the dominant energy companies in their countries. Although the provision of facilities for the miners is only a tiny part of their current business, both companies see this as a great opportunity.
According to the forecasts of Morgan Stanley, this year the consumption of electricity miners will increase to 130 terawatt*hours, which equates to the electricity consumption of Argentina or projected use of all electric vehicles in the world by mid 2020-ies.
Olivier Roussy Newton (Olivier Roussy Newton), Director and co-founder of the canadian group of companies HIVE Blockchain Technologies (HIVE.V), which in January began to produce live in Sweden reported that they plan to increase production capacity from 17.4 to 26.8 megawatts.
In March, the American mining company Bitfury has opened Norway’s new data center cost $ 35 million. The company will buy 350 gigawatt hours of clean energy from a local supplier of renewable energy Helgeland Kraft [HKRAT.UL].
The Chinese company Bitmain, a newly created subsidiary in Switzerland, is also studying the potential of Sweden and Norway.
The share of China accounts for about 70 percent of cryptocurrency mining, but Beijing is concerned about the pollution from coal power, which is today the main method of production of electricity in China. This has forced mining companies to seek cheaper sources of energy elsewhere.
In Norway, hydropower accounts for more than 99% of electricity production, while in Sweden the number is about 40 percent.
«This region is the Saudi Arabia of clean energy,» said bill tai (Bill Tai), Board member of Bitfury.
However, Alex de Vries (Alex de Vries), a specialist in the blockchain at PwC, said that the potential of mining nedolgovechnym:
«If the energy consumption of the miners will continue as today, that cryptocurrency will become unstable. That is why it can be a challenge for the energy companies only in the short term.»