NORWAY Law and Practice Contributed by: Jøran Sandvik, Aksel Tannum and Ida Mattsson Sperre, Advokatfirmaet Haavind AS
3.3 Approvals to Construct and Operate Generation Facilities Typical Terms and Conditions A licence for the acquisition of waterfall rights (see the Waterfall Rights Act) typically includes conditions on licence fees and mandatory sales of power to the municipalities where the water- falls are located. Licences granted under the Watercourse Regu- lation Act contain manoeuvring regulations that establish parameters for water levels and releas- es. These include detailed provisions regard- ing the control mechanisms and procedures for reservoir drainage. Conditions stipulating minimum water flow in rivers and streams are determined based on a targeted assessment. Further, requirements for establishing a business development fund within the municipality where the development occurs may be imposed. The licences also contain the conditions of licence fees and mandatory sales of power to munici- palities. Licences under the Water Resources Act and the Energy Act also state the conditions and rules of operation. These conditions may include meas- ures to secure a rational energy supply from the plant; provisions on the timing of initiation, construction, technical operations and terms of exploitation of the individual work; and condi- tions aiming to prevent or minimise damage to natural and cultural heritage. Individually adapt- ed measures and conditions may be imposed if considered necessary. Process to Obtain an Amendment or Relaxation of a Term/Condition The process is as follows. • The Energy Act: In special cases, the stipu- lated conditions may be changed for reasons
the project to society must outweigh the disad- vantages. For large hydropower, the NVE submits a recom- mendation to the Ministry of Energy. The NVE’s recommendation is subject to a (limited) con- sultation before the Ministry presents the case before the Royal Council, which makes the final decision. Projects that comprise more than 20,000 natural horsepower, and projects that are considered particularly controversial, must be handled by the National Assembly before the Royal Council makes a (formal) decision. The NVE has the authority to grant licences for installations according to the Energy Act, such as onshore wind power plants and solar power plants. Prior to the NVE’s handling of a licence application for an onshore wind power plant pro- ject, a positive local planning decision from the local municipality according to the Planning and Building Act is needed. This does not apply to any other power plants. The local planning deci- sion follows the procedures laid out in the Plan- ning and Building Act. A licence decision made by the NVE can be appealed to the Ministry of Energy, which makes the final decision. For smaller hydropower – ie, plants with less than 10 MW installed capacity and limited regu- lation, the licensing procedures are simplified. After receiving a licence application, the NVE sends out a consultation letter to affected par- ties. To be granted a licence, the advantages must outweigh the disadvantages. The decision of the NVE may be appealed to the Ministry, which in turn makes the final decision.
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