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State Aid

State aid: The Authority approves aid for five wind power projects in Norway

15.12.2010

PR(10)71 - English version

Today the Authority has adopted five decisions on aid for Norwegian wind power energy production granted under the Norwegian Energy Fund Scheme approved in May 2006.[1] All five decisions involve grants in excess of 7.5 million EUR and have therefore been individually notified to the Authority for a detailed assessment under the State aid Guidelines for environmental protection:

Aid recipient Aid in mill. NOK Capacity
Kvalheim Kraft DA NOK 92.8 18.4 MW (8 turbines)
Jæren Energi AS NOK 511 73.6 MW (32 turbines
Nordkraft Vind AS NOK 200.1 25.3 MW (11 turbines)
Nord-Trøndelag Elektrisitetsverk Energi AS NOK 228 36.8 MW (16 turbines)
Norsk Miljø Energi Sør AS NOK 388 71.3 MW (31 turbines)

The aid in all five cases has been examined on the basis of  the Energy Fund Scheme and the State aid Guidelines on aid for environmental protection. The Guidelines allow for state support to environmental objectives where, on balance, the environmental benefits of such support outweigh the potential distortions of competition. In particular, support to renewable energy production may be granted to compensate for high investment costs.

In all five cases the Authority has found that the positive effect of increasing renewable energy production outweighs the limited effect of the aid on competition. The aid is proportional as it is limited to the aid necessary to trigger investments in the respective wind power projects. The aid also provides an incentive effect since in all cases the projects would not be commercially viable without the aid. Finally, the market power of the aid recipients are in all cases less than 1% and hence the structure of the market for electricity production is unlikely to be altered by the grant of the aid.

In addition, the Authority has today decided not to raise objections to a prolongation of the Energy Fund scheme, operated by Enova, with one year. The scheme was originally approved for a five year period (2006-2010) by the Authority. The Authority is currently in the process of assessing a new Energy Fund scheme. As the Authority has yet to finalise its work, it has decided to approve a prolongation of the previous scheme.

For further information, please contact:

Mr. Per Andreas Bjørgan,
Director, Competition and state aid directorate
Tel. (+32)(0)2 286 18 36
Mob. (+32)(0) 477 26 30 27



[1] Decision 125/06/COL




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