The Norwegian government has decided to delay its plan to implement additional taxes for onshore wind power operators by a year, to 2024. The move comes after stakeholders strongly criticised the proposed ground resource tax, which was expected to generate NOK 2.5bn ($238.36m) in tax revenue starting with the 2023 tax year. The new tax, which was part of the centre-left government's efforts to bolster local and state finances, was met with concerns that it would jeopardise the expansion of renewable energy in the country.
The Norwegian finance ministry has announced that a parliamentary bill will be put forward in the autumn to take effect for the income year 2024. The postponement has been welcomed by the energy industry lobby group, Renewables Norway, who have been advocating for amendments to the proposal.
“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,” said Renewables Norway's head, Aaslaug Haga.
Despite Norway's need to increase its annual power generation by at least 40 TWh by 2030, onshore wind development in the country has stalled due to local backlash, concerns over foreign ownership and conflicts over the rights of indigenous peoples. The licensing of onshore wind farms was halted for three years and only resumed last year.