Norway’s government has released details of its plan to offer subsidies for renewable energy including hydropower from a 20 billion kroner (US$3.02 billion) fund to promote clean energy.
The Oil and Energy Ministry said October 5 that wind power producers would get 8 oere (1.2 US cents) per kilowatt-hour, bio-energy and other pioneering technologies 10 oere (1.5 US cents) per kWh, and small hydropower plants 4 oere (0.6 US cent) per kWh for 15 years starting from 2008.
The money would come from returns on the renewable energy fund, which also is to finance investment in bio-energy, district heating projects, energy savings, and energy efficiency. The fund, which will be managed by state energy company Enova, initially was announced in June. (HNN 6/19/06)
“There is great interest in developing wind power, and there is a significant number of small hydropower projects that are ready for development,” Oil and Energy Minister Odd Roger Enoksen said.
Renewables to help with power shortage, carbon emissions
Energy-rich Norway, the world’s third biggest exporter of oil, produces 99 percent of its electricity at hydropower plants, but faces an electricity shortage with demand rising and supplies limited with most major waterways already dammed.
An unusually dry summer sent power prices soaring amid fears that Norway, one of the world’s richest countries, might have to ration electricity this winter as low water levels curb hydropower potential.
Norway also needs to promote renewable energy use because its emissions of carbon dioxide, mainly from burning oil, are above target at 9 percent above 1990 levels in 2005. Under the Kyoto Protocol on curbing global warming, Norway must limit any increase in emissions to no more than 1 percent by 2008 2012 compared to 1990 levels.
“By establishing this subsidy scheme for renewable electricity the government has paved the way for new power production,” Enoksen said. “Industry must now take its part of the responsibility for getting more renewable power into the network.”
Norway’s government plans to provide 10 billion kroners (US$1.5 billion) for the fund in the 2007 budget, and put another 10 billion into it in 2009.
The fund is intended to increase renewable energy production, and heating and energy efficiency by 30 terawatt-hours — or 24 percent of Norway’s electricity consumption last year — by 2016 compared with 2001. The previous target was for 12 TWh by 2010.