NORWAY Trends and Developments Contributed by: Jøran Sandvik, Ida Mattsson Sperre and Aksel Tannum, Advokatfirmaet Haavind AS
The power situation in Norway and nearby mar- kets has become more challenging in recent years, largely due to Russia’s invasion of Ukraine. To ensure a secure supply, and to facilitate ener- gy transition and green industry, the government aims to increase renewable energy production, strengthen the grid and improve energy efficien- cy. Among the government’s main objectives are to continue implementing the green transition and to take action to achieve climate goals. The integration of European energy regulations and Norway’s involvement with the Agency for the Cooperation of Energy Regulators (ACER) have sparked significant debate within Norway, particularly concerning the nation’s control over its energy policy and sovereignty. The discord within the government regarding the implemen- tation of the EU’s Fourth Energy Market Package (“Clean Energy for all Europeans”) culminated in the departure of one of the coalition parties from the government in January 2025. In the wake of this political shift, the Norwegian government resolved to incorporate several key directives into the European Economic Area (EEA) Agree- ment, namely the Renewable Energy Directive (RED II), the Energy Efficiency Directive and the Energy Performance of Buildings Directive. These directives form part of the Clean Energy Package, which was adopted by the EU in 2018 and 2019, and are instrumental in advancing the EU’s energy and climate objectives. Offshore Wind In terms of developments, offshore wind is and will continue to be a major focus of attention in Norway. The Offshore Energy Act allows com- panies to apply for a licence to develop projects in appointed areas. Offshore renewable energy production requires that:
• an area is opened for offshore wind by the government; • a company is exclusively awarded an area for offshore wind development; and • the company is awarded a licence and a detailed plan for offshore wind production according to the Offshore Energy Act. The government has appointed the current transmission system operator (TSO) for the Nor- wegian mainland, Statnett SF, as the TSO for the future grid infrastructure on the Norwegian Continental Shelf as well. The government has also announced that grid costs related to this future offshore grid will be borne by licensees rather than onshore grid customers. The current tax regime does not regulate off- shore wind specifically, which means that Nor- wegian companies will be liable to tax in accord- ance with the general tax rules. On 21 February 2022, the Ministry of Finance proposed a change to the Norwegian Tax Act, widening Norway’s taxation right on the Norwegian continental shelf to also cover foreign companies’ income from the production of energy from renewable resources, including offshore wind. The new rules entered into force in 2024, implying that foreign companies will generally become subject to the same tax rules as Norwegian companies. More information about taxation and financing are available online. Southern North Sea II The first large-scale, bottom-fixed Norwegian offshore wind area, Southern North Sea II (SN II), was awarded in March 2024. SN II’s first project phase will have a maximum developed capacity of 1,500 MW. A monetary auction with prequali- fied applicants was held on 29 March 2024. Ven- tyr SN II AS, owned by Parkwind and the Ingka Group, won the auction and will be the first to
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