Tax On Wind Turbines

• Published date: 04 September 2023
• Subject Matter: Environment, Tax, Energy and Natural Resources, Energy Law, Environmental Law, Oil, Gas & Electricity, Tax Authorities, Renewables
• Law Firm: Advokatfirmaet Hjort DA
• Author: Thomas Aln's and Sjur Obrestad Gabrielsen

With regards to the presentation of the revised National Budget, the Norwegian government announced their plans concerning the introduction of a moderate production tax on onshore wind power production from 2022.

Wind turbines are currently supported through favorable depreciation rules and electricity certificates, however the deadline for being covered by these schemes expires in 2021. It is important to note that the capacity of wind power has increased significantly over the past few years, which is partly a result of these support schemes.

Over the past few years there has been considerable interest concerning onshore wind power in Norway. However, wind power licensing has been suspended since April 2019, and the Norwegian Parliament has therefore requested the government for proposals as how to tax wind power on land.

Based on this request, the government has announced its intention to introduce a moderate production tax on wind turbines from 2022, granted that the tax is in accordance with the EEA agreement. The Norwegian state will receive the income generated from the tax, which will then be distributed to the host municipalities. The fee is designed as an...