Background for the Proposal
On 1 October 2023, a sharing scheme was introduced that allows grid customers on the same property (i.e., with the same cadastral number) to share surplus electricity production from installations up to 1 MW. This scheme has been criticised for being poorly suited to sharing energy within commercial areas, as it does not allow for sharing surplus production from installations above 1 MW, nor does it permit sharing between properties with different cadastral numbers.
On 5 February 2024, the Norwegian Energy Regulatory Authority (RME) proposed changes to the rules. RME suggested that producers with up to 5 MW installed capacity should be able to share electricity with neighbouring properties. We have previously written about this proposal. Like the current scheme, RME’s proposal has been criticised for being inadequate for sharing energy within commercial areas, mainly because the sharing arrangement is limited to neighbouring properties.
To better facilitate the sharing of local energy production within commercial areas, the Ministry of Energy and the Ministry of Finance have now put forward a new proposal. The scheme aims to expand the possibilities for sharing surplus production, thereby enabling increased profitability and new investments in local energy production.
About the Proposal
The proposal is based on the principle that the sharing of energy production will take place virtually. In simple terms, grid customers/meters participating in the scheme will be billed for a lower consumption than their actual usage. The locally produced energy is fed into the grid but is shared among participants in the scheme through a financial settlement. Grid customers/meters receiving locally produced electricity will also save on grid tariffs and fees compared to receiving electricity from a regular supplier, while the local producer can charge for the energy that is shared.
The Ministry of Energy proposes that all renewable energy production facilities with a total installed capacity of up to 5 MW may participate in the sharing scheme. This represents an increase of 4 MW compared to the current arrangement.
Furthermore, it is proposed that the sharing scheme should not be limited to the same cadastral number (current scheme) or neighbouring properties (RME’s proposal), but should apply to a “contiguous commercial area.” This term is intended to cover commercial areas, business parks, industrial parks, etc., where businesses are co-located and collaborate or share common functions in various ways. However, the term is not intended to include general commercial buildings in urban or city centre areas. The exact boundaries of this definition remain unclear, and the Ministry of Energy is therefore seeking input on this issue during the upcoming consultation.
Hjort is Following Regulatory Developments
The proposal for the new sharing scheme is now out for consultation, with a deadline of 3 February 2025. It is encouraging that the government, through changes to the sharing scheme, is now seeking to unlock some of the potential for energy production that does not require major interventions in nature. Hjort is closely following regulatory developments and looks forward to assisting clients both within and outside commercial areas with new and exciting projects in the future.
