NORWAY Law and Practice Contributed by: Robin Aker Jakobsen, Amund Fougner Bugge, Jan Magne Langseth and Stig Walle, Simonsen Vogt Wiig
Expanding Scope of Licensing and Control Licensing requirements are being expanded to cover additional forms of generation such as larger solar and certain small hydropower projects. Consequently, the regulatory system now directs capacity and growth towards the most feasible projects, with greater emphasis on security and broader societal interests. Reforming NEA However, as Norway shifts away from fossil fuels, there is an increased need to expand renewable ener- gy production to meet the growing electricity demand. To address this, the NEA is being amended, with a particular focus on improving the licensing process for new renewable energy projects and increasing grid capacity. These changes aim to make the approval process for renewable energy production and network infrastructure more efficient, transparent, accessible and predictable. Regional Focus on North Norway The Norwegian government is currently increasing its focus on launching new energy projects in Finnmark, Norway’s northernmost region. It has a strategic plan to license both new wind power projects and trans- mission lines in this area. 7. Due Diligence/Data Privacy 7.1 Energy and Infrastructure Company Due Diligence In Norway, there is no general obligation applicable to a listed target company to give the offerer access to due diligence. However, given that most takeover processes in Norway are completed as friendly takeo- vers, the target company usually allows the offerer to execute due diligence at a certain level. Should the board of directors refuse to give an offerer access to due diligence, this may give rise to directors’ liability vis-à-vis any shareholders substantiating a financial loss due to the board of directors’ refusal. In principle, the target company may provide all sorts of due diligence information to offerers, including financial statements, business plans, legal docu- ments, and operational data. However, it is important that the board of directors balances the need to pro-
manageable intervention. The appeal’s result may set a precedent for future wind power development and its compatibility with indigenous rights in Norway. 6.2 Key Developments in Renewable Energy and Cutting Emissions Stricter Rules for Grid Access and Project Maturity In recent years, Norwegian grid companies have faced new and stricter regulations for handling grid con- nection applications, particularly through regulatory amendments. Norwegian authorities have introduced clear requirements for project maturity – only applica- tions that document concrete progress (such as land access, licensing status, and financing) are granted a place and priority in the grid queue. Lack of such progress may result in losing the place and priority in the grid queue. The requirements for project maturity and progress applies to producers and to large consumers equally. Only mature projects are admitted to the grid queue. Broader Regulatory Tightening Across Power Sector Norwegian grid companies are also facing stricter requirements related to network development plans, delivery quality, and preparedness, as well as new tar- iff structures with increased use of capacity charges. These changes aim to streamline the construction and operation of the grid and prioritise mature and realistic projects. For power producers, licensing rules and network connection processes have both become significantly stricter. Notably, there is now a requirement for munic- ipal land zoning clarification before submitting licence applications for onshore wind power production, and the consideration of indigenous and reindeer-hus- bandry interests have gained greater importance fol- lowing key court decisions (see 6.1 Significant Court Decisions or Legal Developments ). In addition, there are stricter rules for changes of own- ership and control pursuant to the NSA. New frame- works for licensing and tenders for offshore wind have also been established.
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