Norwegian Government Submits Legislative Amendments for Quicker Power and Grid Development for Hearing

A brief overview of the proposals

Onshore wind power – from two tracks to one

In August, the Government announced that the requirement for a zoning plan for wind power would be removed, and that the municipalities’ right of veto would be instead provided in legislation  outside the Planning and Building Act.

The Ministry is following this up by moving away from the current two-track system, under which a wind farm must be approved both by the local municipality under the Planning and Building Act and by the Norwegian Water Resources and Energy Directorate (NVE) under the Energy Act. It is proposed that the requirement in Section 2-4 of the Energy Act, stipulating that the project must be approved under the Planning and Building Act before a licence can be granted, be repealed. Onshore wind farms subject to a licence requirement are instead to be exempted from the Planning and Building Act in the same way as grid facilities subject to a licence requirement, cf. the proposed amendment to Section 1-3, second paragraph, of the Planning and Building Act. Chapter 2 and Chapter 14 on impact assessments and Sections 12 A–13 shall continue to apply. The local municipality will thus lose its planning authority in wind power cases. The municipality’s role is instead to be incorporated into the licensing process under the Energy Act through two new meetings:

1.  Start-up meeting during the notification phase: Before the Norwegian Water Resources and Energy Directorate (NVE) establishes the assessment programme, the host municipality shall be offered a start-up meeting with the NVE and the project proponent. Minutes shall be taken of the meeting. The municipality is under no obligation to attend, and the case will not be suspended even if the municipality does not attend. The planning programme phase at municipal level is abolished, and comments shall instead be submitted to the NVE.
2.  Endorsement meeting during the application phase: Under the new Section 3-1 c of the Energy Act, NVE must offer the municipality an endorsement meeting before a licence can be granted. According to the proposal, the meeting is to be held after the licence application has been subject to hearing, and preferably towards the end of NVE’s processing of the application. The municipality must then be able to take a position on a project that has been fully assessed. Following the meeting, the muncipality must ‘as soon as possible’ adopt a reasoned and public statement indicating whether it endorses the project. The Ministry assumes that this should normally take between six and twelve weeks.

If the muncipality decides not to give its approval, the NVE cannot grant a licence. The Ministry may nevertheless grant a licence following any appeal proceedings if considerations of security of supply or other significant societal interests so warrant. The Ministry describes this as a continuation, albeit a narrowing, of the scope currently provided for under the Planning and Building Act, so that, in exceptional cases, a licence may be granted for a wind farm without the municipality’s consent.

If the municipality declines to attend the consultation meeting, fails to respond within a reasonable time, or does not adopt a statement as soon as possible after the meeting, the right of veto does not apply. The NVE shall then assume that the municipality has neither granted nor refused consent. Once consent has been granted, it cannotbe freely withdrawn, and it cannot be withdrawn at all  after a licence has been granted. A ‘no’ vote, on the other hand, may be changed until the NVE has decided the matter, for example if the licence area is adjusted. The NVE cannot grant a licence for an area larger than that discussed at the approval meeting. Documents exchanged in connection with the approval meeting may be exempt from public access.

The objection procedure – going further than previously announced

The Government is going further in restricting the right to object than was initially announced. State and regional bodies, as well as local authorities, will no longer be able to raise objections in licencing cases under the Energy Act, the Water Resources Act or the Watercourse Regulation Act. The change is to apply regardless of production technology; that is, to hydropower, wind power, solar power and the grid.

It is also proposed that the specific right of appeal currently derived from the right to raise objections be removed. Instead, public bodies will only have the right of appeal under the general rules of the Public Administration Act. The Ministry assumes that host municipalities, county councils and the Sámi Parliament will, as a rule, continue to have the right to appeal, whilst several central government bodies will lose this right. The Sámi Parliament’s right to raise objections will be retained, as the Government also announced in August. Objections and appeals lodged before the amendments come into force are to be dealt with in accordance with the old rules.

Deadlines for the processing of applications

In August, the Government announced a two-year deadline for the NVE’s licence processing, calculated from the date a complete application is submitted. The Ministry is deferring the detailed regulation of this deadline, and it is proposed instead to provide a legal basis in the Energy Act, the Offshore Energy Act and the Water Resources Act for setting deadlines in regulations, and for regulating cooperation and coordinated processing between the licensing authority and other authorities that grant necessary permits, for example under the Cultural Heritage Act, the Ports and Fairways Act or the Pollution Control Act. The Ministry points out that Article 16 of the 2018 Renewable Energy Directive sets a corresponding two-year deadline, and that the proposal goes further than the Directive.

For offshore wind, it is proposed that the King in Council may determine that all or part of an area opened for development should be subject to a tailored application process, , with simplified requirements for project-specific impact assessments and shorter processing deadlines.

Battery facilities

There are an increasing number of batteries in the power system, and the Ministry proposes to clarify the regulatory framework under which these are to be dealt with. It is to be expressly stated in Section 3-1 of the Energy Act that facilities for the storage of electrical energy require a licence. Battery facilities subject to a licence requirement are to be largely exempt from the Planning and Building Act and dealt with solely by the Norwegian Water Resources and Energy Directorate (NVE). Battery facilities not subject to a licence requirement are to be dealt with solely by the municipality in accordance with the Planning and Building Act. The threshold for the licence requirement may be laid down in regulations.

Transitional provisions

If a proposal for an area zoning plan for wind power has been put out for public consultation before the amendments come into force, it may be finalised in accordance with the current rules. An adopted area zoning plan shall then be regarded as municipal approval under the new Section 3-1 c. The municipality and the project developer may also choose to have the project transferred to the new scheme.

Our assessment

We have previously noted that a faster and simpler process for securing local support  can provide greater predictability for both developers and local communities. The proposal takes a clear step in that direction. The kick-off meeting gives the muncipality the opportunity to become involved in the case processing at an early stage. The approval meeting further enables themunicipality to take a position on a fully assessed project. The approval process must not be used to delay the matter, and the Ministry assumes that the local authority will provide feedback to the Norwegian Water Resources and Energy Directorate (NVE) within three weeks of formally receiving the proposal. If the local authority does not wish to hold an endorsement meeting, or fails to respond within a reasonable time, it loses the opportunity to influence the outcome of the case.

For developers, it is positive that the municipality’s position is announced at an establishedstage in the process and that the municipality cannot change its mind once it has given its approval. The transitional rules also allow projects already in the planning phase to continue as before. At the same time, the municipality’s decision is postponed until the end of the process. The project proponent must therefore complete the notification, impact assessment and application before it is clear whether the municipality will give its approval. The Ministry itself points out that the Norwegian Water Resources and Energy Directorate (NVE) may devote resources to projects that ultimately do not receive a licence because the municipality refuses to give its approval. This applies even more so to developers. The kick-off meeting is therefore crucial. Early and constructive dialogue with the host municipality will, in practice, be decisive in reducing the risk of spending a great deal of time and money on a project that is ultimately halted.

One remaining question is whether the Ministry’s power to override a municipal veto will have any practical significance in highly contentious cases, where considerations of ‘security of supply’ or ‘other significant societal considerations’ suggest that a licence should be granted. In such a case, will the state authorities dare to disregard a municipal veto? Another question is what is meant by ‘security of supply’ or ‘other significant societal considerations’. For example, is the desire for a future power surplus relevant to the assessment, and what other significant societal considerations would be relevant? The authorities’ practice must ensure predictability and equal treatment, and must not undermine the local support that the scheme is intended to safeguard.

Removing the right to object for all public bodies except the Sámi Parliament could streamline the processes. According to the Ministry, many objections stem from a lack of, or inadequate, impact assessments. When the right to object is removed, it becomes even more important that the Norwegian Water Resources and Energy Directorate (NVE) ensures that the case is sufficiently well-documented, and that the licence application and impact assessments are of a high standard. If this is not ensured, stakeholders risk administrative decisions being overturned upon subsequent judicial review.

The requirements for proper case handling, the EEA legal framework and due regard for the rights of indigenous peoples still apply. The fact that the Sámi Parliament’s right of objection is retained means it remains important to take Sámi interests and the duty to consult seriously at an early stage of project development.

The legal basis for procedural deadlines is an important step towards the announced two-year deadline. The practical effect, however, depends on how the regulations are drafted, what the consequences will be if a deadline is not met, and whether the Norwegian Water Resources and Energy Directorate (NVE) has the capacity to process cases within the deadlines.

What happens next?

The hearing deadline is 15 January 2027. The Ministry has announced that proposals for regulatory amendments, including those concerning battery storage facilities and processing deadlines, will be sent out for consultation separately. If the timetable is adhered to, the new rules could come into force on 1 July 2027.

For developers with wind power projects at an early stage, it is particularly important to assess the timetable in relation to the transitional rules, and to consider whether it is worthwhile to continue under the current system or to wait for the new scheme.