NORWAY Law and Practice Contributed by: Robin Aker Jakobsen, Amund Fougner Bugge, Jan Magne Langseth and Stig Walle, Simonsen Vogt Wiig
conservation, and grid capacity is an issue. Improved guidance has made the process clearer but not neces- sarily faster in municipalities prone to conflict. This structural change is also a key driver shifting transactional activity towards already-completed wind farms, district heating, and capacity/rehabilitation projects within hydropower, where issues of societal acceptance and land use have already been “resolved” through earlier decisions. The ESG and indigenous rights dimensions have become increasingly impor- tant, particularly following the Supreme Court’s deci- sion in the Fosen case, as further described in 6.1 Significant Court Decisions or Legal Developments . 1.3 Access to the Energy and Infrastructure M&A Market In Norway, investors are typically accessing the ener- gy and infrastructure M&A market through participa- tion in structured sales processes or subscription of shares in share issues managed by financial advisers. There have also been examples of investors joining forces with domestic well-established players with- in the sector. Sweden-based Infranode and Hitech Vision joined forces with Norwegian power company Hafslund Eco in 2022 to acquire Fortum Oslo Varme AS. After the transaction, Fortum Oslo Varme AS was 60% owned by Hafslund Eco ‒ with Infranode and Hitech Vision owning 20% each of the remaining 40% of the company. During the periods when the Norwegian equity capital market was more active (eg, in 2020 and 2021), many investors accessed Norwegian renewable growth companies through private placements conducted in connection with listings on the Norwegian growth market, Euronext Growth Oslo. 1.4 Energy and Infrastructure Projects In relation to offshore wind (where the ambition is to allocate 30 GW by 2040), Sørlige Norsjø II Phase 1 was awarded to Ventyr II AS in 2024 and the Norwegian government has now initiated steps to further mature the project, including processes related to necessary studies and the grid connection. At the same time, Utsira Nord – which is intended to demonstrate and scale up floating technology – has, as of September
2025, only two applicants. The subsidy allocation will be targeted at a few large-scale projects. In addition, there are a number of hydropower and grid projects focused on increasing capacity and rehabili- tation. These projects often deliver significant social utility relatively quickly, have predictable cash flows, and are consequently easier to finance. Hydropower accounts for approximately 88% of Nor- way’s total normal annual electricity production and is still the backbone of the Norwegian power system. A special feature of the Norwegian hydropower system is its high storage capacity, balancing production and consumption in the power system at all times. Ear- lier this year, Parliament permitted more hydropower projects in protected waterways. Licensing authori- ties may now in some cases review applications for projects over 1 MW without needing parliamentary approval. However, the Water Resources Act contin- ues to impose strict restrictions on what is allowed in protected waterways. We are also seeing grid investments at all levels, from the lowest distribution networks to major expansions of the transmission grid designed to connect different regions and Norway’s five pricing areas. The pace of development is high and increasing. Finally, solar power is growing from a low base, pri- marily via rooftop installations but also as ground- mounted projects where land and grid access can be resolved. Based on market observations, transaction activity seems to reflect a pattern in which more capi- tal is being allocated to mature, operational assets, whereas pure “greenfield” acquisitions of onshore wind and utility-scale ground-mounted solar remain more selective. 2. Establishing and Exiting Early- Stage Companies in the Energy and Infrastructure Industry 2.1 Establishing and Financing a New Company Early-stage companies in the Norwegian energy and infrastructure industry are typically incorporated as
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