The governement have suggested increased taxes for the industry by implementation of a resource rent tax on wind power, an increased production fee and an extraordinary tax on the energy sold for a price that exceeds 70 øre per kWh.t, and a doubling of the production fee.
Norsk Vind supports a tax-model that ensures that more of the value creation is awarded to the hosting municipalities. At the same time, it is important that this reform does not impose an obstacle to further investmentments in renewable energy.
As of today, wind power makes up a significant contribution to the energy production in Norway. At the same time we know that the consumption will increase more rapidly than the rate of production over the coming years. Statnett has confirmed there is a great risk of Norway having a deficit of electrical power as soon as 2026. Large industrial stakeholder and national politicians have expressed a clear aspiration to increase power production going forward. This will be important to secure work within the industial sector and will contribute to acceplable power prices for households. It will also be important in order to reach the climate goals that Norway is commited to.
Increased local compensation for use of our common natural resources is the right way to go. At the same time it is essential that the tax distribution is allocated in a manner that makes it possible to reach the ambitions of increased power production.
One of the aspects underlined by the government in their reasoning for inreasing taxes in the wind industry, is their ecxpectation that the costs related to wind power development will continue to decrease. Onshore wind however, is a seasoned technology with less potential for further cost reductions. We see that turbine suppliers who have been involved in onshre wind projects in Norway, experience economic challenges and red numbers in the books. There seem to be a number of aspects indicating that the cost levels in onshore wind have reached it`s lowest and that the prices may increase in the time to come. At the same time, most of the projects with the best wind conditions have allready been constructed.
Norsk Vind works to expand our portfolio. We know that we are able to generate new power production at favourable conditions that are beneficial to the industy-sector that we aim to secure in Norway. We are none the less dependant on predictable conditions. If Norway is dependent on more renewable energy, it is crucial that the tax distribution for wind power projects is set up in a manner that makes it possible to commit to investment desicions for the best wind sites.
We are ready to contribute with more local compensation, but we require some neùance to the tax reformed proposed by the government in order to ensure expediency in working towards an increased renewable power production in Norway. We look forward to the consultation rounds on this matter!
The governement have suggested increased taxes for the industry by implementation of a resource rent tax on wind power, an increased production fee and an extraordinary tax on the energy sold for a price that exceeds 70 øre per kWh.t, and a doubling of the production fee.
