NORWAY Law and Practice Contributed by: Robin Aker Jakobsen, Amund Fougner Bugge, Jan Magne Langseth and Stig Walle, Simonsen Vogt Wiig
5. Overview of Regulatory Requirements 5.1 Regulations Applicable to Energy and Infrastructure Companies To set up and start operating a new company related to energy production and grid operations, a license is required under the Norwegian Energy Act (NEA). The Norwegian Energy Regulatory Authority ( Regulerings- myndigheten for Energi , or RME) and the NVE are the licensing authorities in such instances, depending on the type of licence. It is important to distinguish between company licenc- es (such as trading licences for production and grid operations) and project-specific licences. A company must typically obtain a trading licence for production and grid operations, for which the standard process- ing time may vary depending on the case. In addi- tion, a separate project licence may be required before implementation of any specific energy or infrastruc- ture initiative. As of 1 July 2023, the host municipality must approve the re-zoning of the area for wind power and adopt an area zoning plan for the project. The requirements imply that wind farm projects are processed in paral- lel under both the NEA and the Planning and Build- ing Act, with the NVE and the host municipality as responsible authorities, respectively. Both the Minis- try of Local Government and Regional Development and the Ministry of Energy, as well as the NVE, have guidelines to ensure co-ordination of the planning and licensing processes is arranged where appropriate. Offshore wind follows a different process, whereby the Ministry of Energy manages area designation, tenders, and support scheme design, such as for the allocated areas Sørlige Nordsjø II and Utsira Nord. Meanwhile, the NVE is responsible for the environmental impact assessments and grid connection. Project timelines can vary significantly, from months for straightforward district heating projects to several years for large-scale production and grid initiatives that involve stakeholder conflicts. For offshore wind companies and other large-scale grid-companies, early engagement with the RME/the NVE and relevant
municipalities and stakeholders is recommended to ensure project bankability. Securing agreements with landowners and, where applicable, with the affected Sámi interests can also positively influence the gov- ernmental decision-making process. 5.2 Primary Securities Market Regulators The Norwegian FSA is the takeover supervisory authority in Norway for takeovers related to compa- nies listed on a regulated market in Norway. Given that takeovers on Euronext Growth Oslo are unregulated, there is no general supervisory authority for takeovers on such market. However, if a trans- action connected to a company listed on Oslo Børs, Euronext Expand or Euronext Growth Oslo triggers a restriction under the EU Market Abuse Regulation (MAR) – for example, the insider trading restrictions or the obligation applicable to primary insiders to dis- close transactions in listed securities ‒ then the Nor- wegian FSA is the relevant regulator. 5.3 Restrictions on Foreign Investments In Norway, there are clear rules regarding the owner- ship and investment in the power sector, with distinc- tions drawn between different forms of power produc- tion and grid infrastructure, as follows. • For hydropower, public ownership is required for larger watercourses – that is, for facilities utilising more than 4,000 natural horsepower (approximate- ly 2.9 MW). Such water rights can only be acquired with a licence pursuant to the Norwegian Waterfall Rights Act. Under this regime, at least two-thirds of the capital and voting rights must be held by the state, county or municipality, whereas private and foreign investors may hold the remaining one-third. • Small-scale hydropower projects below the 4,000 natural horsepower threshold are not subject to these specific public-ownership requirements but must still obtain licences under the NEA and asso- ciated regulations. • For wind, solar, and other renewable generation, there are no ownership or nationality restrictions. Both Norwegian and foreign investors may own such facilities, subject only to the ordinary licensing requirements under the NEA and related regula- tions.
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