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Concession Process for Solar Cells under the Energy Act

With record-high electricity prices and low development costs, solar power has become a rapidly growing market over the past year.

Hjort has extensive experience working in the power industry and has assisted several players in the solar panel sector over the past year. In this article, we briefly explain the concession process for solar panel installations under the Energy Act. We have written about the other regulatory requirements for establishing solar panel installations in Norway here (norwegian).

Concession Process Under the Energy Act

For facilities that require a concession under the Energy Act, the Norwegian Water Resources and Energy Directorate (NVE) has divided the concession process into six steps.

Step 1 – Project Development Before Application

Before submitting the concession application to NVE, several preparations should be made. Firstly, landowner issues should be clarified (for example, by entering into a landowner agreement). Furthermore, it is advisable to consult the municipality, county municipality, and the County Governor to determine if there are any special considerations applicable to the specific area. Additionally, initiating a dialogue with the local network company about possibilities for grid connection is recommended.

Step 2 – Application and Environmental Impact Assessment

Solar power plants that require a concession under the Energy Act are subject to the requirements for environmental impact assessments, as stipulated in § 7, subsection a of the Environmental Impact Assessment Regulation. These assessments must be conducted by individuals with relevant expertise  and should detail the project’s effects on the environment and society, such as visual impacts, biodiversity, pollution, agriculture and wildland resources, other business and community interests, and restoration.

The application and environmental impact assessment must consider the local concerns. Both positive and negative effects of the project must be described. In addition to the environmental impact assessment, the concession application should include a description of the facility, chosen location, grid connection, solar resources, economics, and production.

If the knowledge base is insufficient, NVE may request additional studies or information.

Step 3 – Public Consultation of the Application and Environmental Impact Assessment

After receiving the application, NVE will send it for consultation to relevant stakeholders. The consultation will also be published in local media. NVE may also conduct meetings with local/regional authorities and hold public meetings about the project.

Step 4 – NVE’s Evaluation and Decision

After the consultation process and once NVE deems the information sufficient, NVE will process the application and make a decision. NVE may either grant permission to build the solar power plant or deny the application. Both outcomes are decisions that can be appealed. NVE’s evaluations and the reasoning behind the decision will be published on NVE’s website.

Step 5 – Handling of Appeals

According to the Public Administration Act, decisions made by NVE can be appealed by parties and others with a legal interest in the matter within 3 weeks after the decision has been received.

NVE will assess whether the appeals contain new information that justifies altering or overturning the decision. If NVE chooses to uphold the decision, the appeals are forwarded to the Ministry of Petroleum and Energy for further review. Decisions made by the Ministry cannot be appealed.

Step 6 – Conditions, Monitoring, and Supervision

In the concession decision, NVE/the Ministry may set conditions that must be met before the solar panel facility can be constructed. In the concessions granted by NVE so far, requirements have included the submission of a detailed plan for the facility to NVE within two years from the final concession decision date. There are also requirements that any future separation of ownership and operation of the facility must be approved by NVE. Additionally, there are requirements for reporting and a plan for the decommissioning of the facility.

The detailed plan must be approved before construction work can begin. During the construction and operation phases, NVE will supervise to ensure compliance with the conditions. In addition to the facility concession and approved detailed plan, it is also necessary to clarify relations with affected landowners and neighbors, municipal plans, grid connection, and possibly the acquisition of other public permits.