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State Aid

State Aid: ESA greenlights changes to the Norwegian tax rules for wind power plants

6.7.2016

PR(16)30 

EN  |  NO

Today, the EFTA Surveillance Authority (ESA) approved changes to the Norwegian depreciation rules for wind power plants. Instead of being based on the lifetime of the equipment, the new rules entail that assets for wind power plants are depreciated over five years. The advantage for the beneficiaries is an increased present value of these deductions from taxable income.

The objective is to promote the production of renewable energy in Norway. In particular, the measure aims at increasing wind power production taking into account the considerable unexploited potential of wind power in Norway.

So far, the main instrument to promote renewable power generation in Norway has been the Norwegian-Swedish green certificate market. The Norwegian authorities have explained that the certificate market has not boosted investment in wind power in the country. The new rules are similar to the existing Swedish depreciation rules.

In 2014, 141.5 TWh of electricity was produced in Norway. Of this, 96% came from hydro, 2.4% from thermal (gas-fired plants) and 1.6% from wind. The aim is to have 28.4 TWh of new renewable electricity capacity in Norway and Sweden by the year 2021.

There is limited potential for further development of hydropower. Wind power production has a large potential, but very little has been developed in Norway since 2012.

The rules apply for projects that started 19 June 2015 or later. The aid is estimated to NOK 115 million annually.

Documents

For further information, please contact:

Mr. Øyvind Bø
Acting Head of Communications
tel. (+32)(0)2 286 18 36
mob. (+32)(0)489 98 77 55




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