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Iceland is suffering energy shortages prompting the country to cap supplies to various industries, according to a recent Bloomberg report. Caught up in the energy rationing are those companies that support blockchain networks.

Landsvirkjun, the island’s leading utility, reportedly reduced supplies to aluminum smelters, data centers and fish meal factories, and BTC mining operators. In addition, the reductions apply to big customers on curtailable short-term contracts. All power supply requests from a new block reward mining firm are rejected. The utility announced last Tuesday that the cuts were effective immediately.

The energy firm stated that reduced hydro reservoir levels, a malfunction at a power station, and a delay in getting power from an external producer have led to the reduced energy allocations. Record demand also played a part, according to Tinna Traustadottir, executive vice president of sales and customers service at Landsvirkjun.

Landsvirkjun explained constraints of the distribution system mean it’s incapable of serving load points in the southwest from Karahnjukavirkjun, the country’s biggest power station located in the eastern part of Iceland.

Iceland’s biggest electricity consumers are its huge aluminum smelters built decades ago to take advantage of the cheap power and supply of renewable energy. Recently, block reward miners have descended on Iceland and other Nordic nations, lured by the cheap electricity needed for minting new tokens.

Publicly listed companies Hive Blockchain Technologies Ltd. (TSXV:HIVE | OTCQX:HVBTF | FSE:HBF), Genesis Mining Ltd., and Bitfury Holding BV are among the companies that set up shop operations in Iceland. These miners and others have a responsibility not to overtax the grid’s power generation capacity.

The nation’s supply of energy is not infinite. The more power the miners use, the less is available for families and other enterprises. Like their counterparts in Sweden, Icelandic officials might start to cool to the block reward mining industry if it senses a looming energy crisis.

Watch: CoinGeek New York panel, How to Achieve Green Bitcoin: Energy Consumption & Environmental Sustainability

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