Finland is becoming an increasingly attractive location for Bitcoin mining, according to a report from the Hashrate Index site.
The situation is driven by several factors relating to the country’s electrical infrastructure and the cost of service.
The article written by Jaran Mellerud, a member of the team at Bitcoin mining company Luxor Mining, details that while Finland has historically lagged behind in Bitcoin mining compared to its Nordic neighbors Sweden and Norway, the industry is likely to experience significant growth in the coming years.
At the time of writing, the country has a bitcoin mining capacity of 40 MW, generating only 0.3% of the Bitcoin hash rate.
His claim is based on the mix of various sources of electricity that Finland currently has.
Foremost among them is nuclear power, with 35% of electricity generation in the country by 2022. This is possible, the article notes, thanks to the country’s investment in nuclear plants since the 2000s.
The inauguration of the Olkiluoto plant, complements the country’s growth in this regard.
Moreover, this adds to the steady growth of wind and solar power production capacity in Finland.
The Hashrate Index report notes that wind power, with a generating capacity of 4.8 GW in 2022, accounts for approximately 16% of the country’s electricity production.
In this regard, Finland has plans to double its wind capacity by 2028, mainly along its west coast.
As for solar, although Finland is not known for its sunny climate, the country has plans to build 7 GW of solar capacity by 2030. Although solar conditions are not as favorable as in other countries, solar power development in Finland can contribute to electricity production during sunny days and help reduce dependence on energy imports.
Lower electricity costs in Finland
All of the above contributes to a sustained decline in the cost of electricity in Finland. As seen in the graph below, the tariff fell by almost 50% in just three months, from February to date.
Thus, the growth in production can impact in favor of industries and the general population in Finland. Bitcoin miners, who can avail themselves of renewable energy and adapt to supply smoothly to operate, will be grateful.
Further conditions favoring Bitcoin mining in Finland
Beyond the conditions linked to production and power supply in Finland, Mellerud’s report highlights other factors that may tempt Bitcoin miners to settle in that country.
For one, it claims that Bitcoin miners in Finland can sell the waste heat generated by the equipment to district heating companies.
This provides them with an additional source of income (with profits of between $15 and $30 per MWh of heat supplied) and improves their political position. In this regard, he adds that Finland is considered a politically stable country, with acceptable regulatory conditions for Bitcoin miners.
In addition, its cold climate (averaging between -4°C and 18°C) and clean air offer optimal conditions for mining. These are relevant factors when planning the installation of Bitcoin mining farms, whose cooling costs decrease considerably in such circumstances.
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