Power Generation, Transmission and Distribution 2025

NORWAY Law and Practice Contributed by: Jøran Sandvik, Aksel Tannum and Ida Mattsson Sperre, Advokatfirmaet Haavind AS

1.7 Announcements Regarding New Policies Fixed Price Rate for Electricity Consumption The Norwegian government has proposed the Norgespris (the “Norway Price”), a voluntary, state-funded scheme enabling households to pay a fixed price per kilowatt-hour for electric- ity consumption. This initiative aims to provide households with more predictable electricity expenses amidst fluctuating and occasionally high prices. It applies to both residential and holiday homes, with a proposed fixed price of NOK0.4 per kilowatt-hour, excluding VAT and additional costs like grid fees. The scheme sets consumption limits at 4,000 kilowatt-hours per month for households and 1,000 kilowatt-hours for holiday homes. The government intends to present a legislative proposal and seek parlia- mentary approval before the summer holiday, targeting implementation from 1 October 2025 and initially running until 31 December 2026. Reduced Electrical Power Tax The Norwegian government has proposed a reduction in the electrical power tax as part of the revised national budget for 2025. This pro- posed reduction will be applicable to both private households and businesses. For a household with an annual electricity consumption of 15,000 kWh, this would result in savings of approxi- mately NOK825 per year. Like the Norgespris , this initiative is part of the government’s strategy to provide greater predictability and lower costs for electricity consumers. Partial Implementation of the EU’s Clean Energy Package After negotiations that led to the Centre Party’s withdrawal from the government in January 2025, the Norwegian government decided that the EU’s Renewable Energy Directive from 2018, the Energy Efficiency Directives from 2012 and

2018, and the Energy Performance of Buildings Directive from 2018 will be incorporated into the European Economic Area (EEA) Agreement and made part of Norwegian law. These direc- tives are part of the EU’s Clean Energy Package, adopted in 2018 and 2019. The government has indicated that four regulations and one directive from the Clean Energy Package will remain on hold until 2029. Although the directives now being implemented were revised in 2023/2024, the government has not yet made a decision regarding these revisions. Further Amendments to the Energy Act In May 2025, the Norwegian Parliament vot- ed for several amendments to the Energy Act aimed at promoting the development of renew- able energy and enhancing grid infrastructure. These changes also seek to streamline the con- cession process and make it more predictable. Among the key amendments is the empower- ment of regulatory authorities to terminate the processing of energy projects early in the con- cession process if it is evident that the projects will not receive a licence. This authority can be exercised under specific circumstances, such as the dissolution of the company, placement of the project in protected areas, risk of natural damage or significant environmental drawbacks. Other key changes include the introduction of time limits for concession holders regarding the commencement and completion of projects. Offshore Wind Offshore wind is on the move in Norway as the Norwegian Continental Shelf is “going green”. The regulatory framework is still under develop- ment: updated information and the latest news about the Norwegian offshore wind development is available online .

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