– This is a moderate fee that will provide income to the host municipalities at the same time that the desire to invest not so much in the home hosts, win over Finance Minister Jean-Tore Sanner (h).
In the state budget proposal, the government proposes a tax on ground wind energy of 1 øre per kWh.
The fee is estimated to save 165 million kroner annually, and will come into effect at a time to be determined by the ministry – according to legal clarifications for the European Economic Area.
The tax comes after calls from the energy industry and the municipal sector that wind energy municipalities should be better compensated.
– It is good if a greater part of the income as community resources are used goes to the community, says Kjetil Høgseth Felde (Sp), Mayor of Fjaler Wind Energy.
A wise move by the government
– This was a smart move by the government. Here, the host municipalities can generate income that can in turn be used to mitigate the damage caused by wind farms, says Gunnar Selden (V), the next mayor of Stade, where there is plenty too.
It is time for us, as the host municipality, to allocate tax revenue for wind power, but hope for a facility on a par with hydroelectric power, says Ann-Christine Fordy (Labour), Mayor of Premanger.
The tax was announced in the revised national budget for 2021, but then another tax was announced the design.
At that time it was proposed to set a tax on the installed energy of the power plant. Now the government wants instead to put a tax on energy production.
“We hope this proposal will be put aside by the new government,” says Helge Eide, Kansas Director of Community, Welfare and Democracy.
KS, Energi Noreg, Norwea and the National Association of Wind Energy Municipalities (LVNK) will issue a joint statement in September regarding a tax on onshore wind energy. There they requested another facility for the fee.
It hurts investor confidence in the green transition
– It is positive that the government will compensate the municipalities that make the land available for wind energy, but we are disappointed that the investments that have already been made are not worth the shield. It hurts the investor confidence we need in the green transition, says Austin Schmidt Gallen, director of Norwea, which is promoting Norwegian renewable energy production.
– It is also unfortunate that the fee can be adjusted every quarter, when one municipal sector asks for a fee that can be managed.
Knut Kropelin is the Managing Director of Energi Noreg, the employers’ organization for the renewable energy industry.
The drawback of this scheme is that it affects existing power stations, which in many cases have marginal profitability, he says.
“The natural resource tax could have been better,” John Evang, head of energy at Miljøstiftinga Zero, told NRK.
– The new government should look at this again, he says.
Should our natural resources be taxed on wind energy?
Niklas Kalvø Tessem is a daily leader in Kraftfylka, an organization that concerns the county municipalities.
It is positive that host municipalities receive direct compensation for encroachment on nature, but we are disappointed that no natural resource tax on wind energy has been proposed in addition to this, he says.
The government’s proposal does not include any compensation for the host province.
– It is unfortunate because in many cases the impact of wind energy is across municipalities, says Tessem.
County Mayor in Western Norway, John Askeland, is happy to introduce a fee that “benefits municipalities who say yes to wind turbines”.
Another aspect of these fees is that they improve the competitiveness of hydroelectric power plants. Current tax rules make it profitable for energy companies to invest in wind energy rather than start upgrading hydropower plants.
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