Putting Energy To Work

• Published date: 04 September 2023
• Subject Matter: Energy and Natural Resources, Energy Law, Renewables
• Law Firm: Advokatfirmaet Hjort DA
• Author: Kristian Brandt, Kristin Bjella, J'rn A. Uggerud and Sjur Obrestad Gabrielsen

The Norwegian Government on 11 June 2021 published a White Paper 'Putting Energy to Work - Long Term Value Creation from Norwegian energy resources".

In the White Paper, the Government presented its plan on how the energy needs of Norway will be met in the future. The White Paper sets out how Norway can use its energy resources to create continued economic growth and new jobs. Key topics in the report are investments in renewable technology, such as offshore wind, hydrogen production, carbon capture and storage (CCS), battery plants, the strengthening of the Norwegian power grid, as well as low emission petroleum and gas industries.

Prime Minister Erna Solberg and the Minister of Petroleum and Energy, Tina Bru, during the presentation of the report to Parliament "Energy for work: Long-term value creation from Norwegian energy resources" in Oslo, June 11, 2021.

We will come back with additional newsletters on several of the topics included in the White Paper, but will in this newsletter focus on some of the important clarifications related to offshore renewable energy in Norway.

In July last year the areas "Utsira Nord" and "S'rlige Nordsj' II" were opened for offshore wind power projects, and at the same time new regulations to the offshore energy act, specifying the rules applicable to offshore renewable energy license applications, were adopted.

These regulations entered into force 1 January this year. It was quite apparent from the start that the regulations did not answer all questions that the market had related to especially the licencing process, and the Ministry of Petroleum and Energy (MPE) today proposed changes to the offshore energy act related especially to the procedures for license application and the selection of applicants.

In additon the MPE today published a detailed guideline for the application process.

In this newsletter we will focus on some of the main clarifications that the Ministry of Petroleum and Energy (MPE) suggests for the future development of offshore renewable energy in Norway.

The licencing process will now start with the MPE first dividing each area (i.e. S'rlige Nordsj' II and Utsira Nord) into smaller project areas, each with a specified maximum installed effect. Each of these project areas will be allocated to one applicant exclusively. Such allocation will not give the applicant the right to finally develop the area, but will give the applicant the exclusive right to submit a plan for impact assessment.

The main...