OSLO, May 11 (Reuters) – The Norwegian government said on Thursday it was postponing plans to introduce additional taxes for onshore wind power operators by a year to 2024 amid industry concern it may derail renewable energy expansion.
The centre-left government in September proposed the introduction of a ground resource tax for existing and new onshore wind farms, which it said would benefit local and state finances.
The new tax was expected to generate about 2.5 billion Norwegian crowns ($238.36 million) in tax revenue, starting with the 2023 tax year.
A consultation process drew strong criticism from stakeholders, questioning the legality of the rapidly introduced proposal and arguing it would bankrupt older wind farms and erode investor confidence.
In light of the responses the government now aims to put forward a parliamentary bill in the autumn, to take effect for the income year 2024, a finance ministry statement said.
Renewables Norway, an energy industry lobby group, welcomed the postponement.
“The proposal for a new ground resource tax for wind power must be amended so as not to hit utterly necessary investments into renewable energy,” the group’s head Aaslaug Haga said in a statement.
Norway faces a power deficit as early as 2027 and is seeking to increase its annual power generation, currently totalling around 155 terawatt hours (TWh), by at least 40 TWh by 2030.
However, onshore wind development in Norway has ground to halt following a period of rapid expansion amid a growing backlash from local communities, concerns over foreign ownership and conflicts over the rights of Indigenous peoples.
Licensing was halted for three years and only resumed last year.
($1 = 10.4882 Norwegian crowns)
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