The Ministry of Petroleum and Energy has presented a green paper on law amendments, to ensure that Norway’s hydropower will remain in public possession. Minister Aaslaug Haga stressed that the amendments will secure and strengthen the public ownership of waterfalls and hydro power stations at state, regional and local level. Haga said he wants to lay this down directly in wording of the Industrial Licensing Act.
The green paper is based upon the consolidation model in order to strengthen public ownership in the hydropower sector. The principal outline of the model was introduced in the provisional decree from August 10, 2007. The green paper further strengthens this consolidation. The proposals are within the room for alternative measures that stands available to the Storting (Parliament) as national legislator within the frames of the EEA (European Economic Area) agreement.
The ministry presented amendments to both the Industrial Licensing Act and the Act relating to regulations of watercourses. Hydropower is the main energy source in mainland Norway, from which almost all the electricity production is derived. Hydropower is a renewable energy source without emissions, and it will gain further value in the future. Hydropower is important in securing the energy supply. Diversified public ownership ensures that there is a large number of competitive hydropower producers in Norway.
The rule which allows private investors to obtain up to one-third of the shares in a public undertaking in the relevant sector will be prolonged. However, in order to ensure public ownership, the proposed changes will not allow private investors to obtain more than one-third of the shares in a public undertaking.
The ministry proposes to continue the system of altering time limited concessions with right of reversion to concessions without time limitation and right of reversion, if waterfalls and power plants are sold from private to public actors.
The deadline for comments on the green paper is April 30. The ministry will evaluate the comments, and as soon as possible present a proposition to the Storting.