Yesterday evening the government published a statement that they have reached a broad consensus between the political parties on the agreement for ground rent tax on Norwegian on-shore wind.

Overall, the resource rent tax (NO: Grunnrenteskatt) for Norwegian onshore wind is lowered from an original effective tax rate of 40% to 25%.

For existing wind farms, the government has also proposed changes to the transition rules which looks better than their initial proposal, although not achieving full investment neutrality. At present there is limited information available to evaluate the full proposal.    

For new wind farms the resource tax will be structured with cash payments of negative resource tax, as is already implemented on large scale hydro. This represents a positive development, which should make the resource tax close to investment neutral for new projects. Although the complete proposal will have to be reviewed to conclude. 

We are pleased that the negotiations have been concluded and the Parliament has reached a broad settlement, says CEO Anders Lenborg. – We are satisfied that our input regarding new projects has been listen to. 

Cloudberry will revert with more details once the complete proposal has been published, estimated early next week.

KeyFacts Energy: Renewable Energy news