Addendum to the white paper on energy

The Norwegian Government published an addendum to the white paper on the long-term value creation from Norwegian energy resources (Meld. St. 11 (2021 – 2022)) on 8 April 2022 – The door is opened for new applications for onshore wind projects and there are limited updates on offshore wind development.

Here is a short summary of certain main points for the renewable sector:

Onshore wind

• The Government opens up for processing of new license applications for onshore wind projects, provided that the host municipality has consented to the application/project.
• Furthermore, in a letter sent by MPE (Ministry of Petroleum and Energy) to NVE (the Norwegian Water Resources and Energy Directorate) on 8 April 2022, MPE underlines that the processing of new license applications for onshore wind shall take into account the amendments and considerations set out in the white paper on the licensing process for onshore wind from 2020 (Meld. St. 28 (2019-2020)) – more information on Meld. St. 28 (2019-2020)) is available here).

Offshore wind

• The Government will seek to make the licensing process more efficient and shorten the timeframe for constructing offshore wind so that the first offshore wind projects may be in operation prior to 2030.
• It is confirmed that the licensing process for Utsira Nord (floating offshore wind) will be based on qualitative criteria to arrange for innovation and technology development. However, the Government intends to establish the auction model as the main model for awarding offshore areas for renewable power production under the Offshore Energy Act.
• Subject to additional grants in the State budget, the Government will propose measures to accelerate the development of Norwegian offshore wind, including by preparing commencement of preliminary studies.
• As previously announced, the first 1,500 MW of Sørlige Nordsjø II will be developed with radials and not as a hybrid project and the Government will investigate the consequence of hybrid projects for the Norwegian electricity system. Statnett will be responsible for planning the development of the offshore grid and be the system operator for cables and facilities that are not governed by the Petroleum Act.
• The Government will procure that that the customers connected to the grid do not cover investment costs for development of the offshore grid for the first offshore wind projects.

The electricity market/end user market

• The Government prolongs the support scheme for households and agriculture.
• The Government is working on new measures relating to the end market and to arrange for the offering of fixed price agreements to private individuals and business (including amendments relating to resource rent taxation).
• The Government will give the Housing Bank an assignment to support low-income households with energy projects/measures from 2023.
• Also, on 8 April 2022 MPE sent a consultation paper regarding amendments to the regulations on power sales and network services (Nw: Forskrift om kraftomsetning og netterkstjenester) and the regulations on price information (Nw: Forskrift om prisinformasjon) on public hearing. Certain amendments are proposed to the regulations on price information to increase the requirements to the information to be provided in connection with marketing of electricity agreements, to introduce requirements to price lists for the electricity retailers and to propose provisions on notifications in the event of amendments by the electricity retailers to the terms and conditions of the electricity agreement. Further, amendments are proposed to the regulations on power sales and network services which are intended to make it easier for the customers to compare electricity prices.

Hydrogen

• The Government has an ambition to arrange for production of low and zero emission hydrogen covering the national demand.
• The Government has an ambition to contribute to the development of a market for hydrogen in Europe.
• The Government will arrange for the establishment of socio-economic profitable production of blue hydrogen, inter alia through Gassco’s architectural function, by allocating areas for CCS storage sites and by a swift and effective processing of applications regarding development under the Norwegian storage regulations.
• The Government will complete an external investigation on the State’s possibility to contribute to the development of a value chain for low and zero emission hydrogen. State ownership as an instrument will be included in the investigation.

CCS

• The Longship Project will be an important part of the Governments CO2 handling and Norway’s contribution to develop necessary climate technologies.
• The Government will arrange for commercial carbon storage on the Norwegian shelf.
• The Government will continue to facilitate for CO2 handling as contribution for reaching the temperature goals of the Paris Agreement, including through arranging for a green industrial effort.
• MPE will review the proposed solution to finance Fortum Oslo Varme AS’ CCS project at Klemetsrud in Oslo.
• On 8 April 2022 also a storage site for injection of storage of CO2 located between the oil fields Brage, Troll and Oseberg was announced in accordance with the CO2 Storage Regulations. The deadline for applications is 1 July 2022.

Batteries

• The Government will present its strategy for batteries during the spring of 2022.

More information is available here.

Amund Berthelsen Erdal

Amund focuses on renewable energy, and assists in acquisitions and mergers within the renewable sector and matters relating to energy law, water resources law and concessions. Amund also has substantial experience within the practice areas real estate and commercial dispute resolution and litigation.

Lars Strøm Killengreen

Lars Strøm Killengreen works primarily with M&A (transactions), corporate and contract law, but also assists in matters relating to energy law, water resources law and concessions within the renewable sector.

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