Norway’s government has presented a package of measures aimed at accelerating the development of electricity generation and power grids, including simplified assessment requirements, a two-year licensing process for grid projects and the removal of certain state authorities’ right to object to grid and hydropower developments.

The measures are intended to reduce by half the average time required to develop national and regional electricity grids compared with the situation before the government took office in 2021.

The announcement comes as demand for electricity and grid capacity has increased significantly, while network development has failed to keep pace. According to the government, limited grid capacity is already making it difficult in several parts of the country to expand businesses, establish new companies and attract green investment.

“An accelerated development of renewable energy and electricity grids is crucial to reducing emissions and creating new jobs and secure industrial businesses in Norway,” Prime Minister Jonas Gahr Støre said.

Two-year deadline for grid licensing

A key element of the package is a two-year processing deadline for licensing cases handled by the Norwegian Water Resources and Energy Directorate (NVE) concerning electricity grids.

The clock will start when a complete application is received. A similar deadline will apply to licensing processes for new power generation.

Assessment requirements will also be streamlined to ensure that studies are no more extensive than necessary. Proposed changes include reducing requirements for certain topics that do not address environmental impacts, changing how field mapping of habitat types is carried out and developing a simpler methodology for assessing energy and grid-related measures.

Another planned tool is a Nature Map, described as a modelled map of habitat types in Norway that will provide relevant information for decision-making in future development projects.

The package also changes the role of state authorities in the licensing process. Legislative work will begin to remove the state administrator’s and other state authorities’ right to object to electricity grid applications and hydropower projects.

The right of the Sami Parliament to raise objections will remain in place.

According to the government, concerns currently addressed through objections should instead be handled through other parts of the licensing process, while the state administrator should have a high threshold for notifying an objection.

Targeting a process that can take up to 14 years

The latest measures build on reforms already introduced to accelerate grid development.

When the Electricity Grid Committee presented its report on Norway’s electricity grid development in 2022, it estimated that planning, processing and constructing some of the largest transmission lines could take up to 14 years.

Most of the committee’s recommendations aimed at speeding up licensing processes have since been implemented or are being followed up through the government’s action plan for faster grid development and better utilisation of existing networks.

Around 70% of grid applications handled by NVE are currently processed through an accelerated procedure, with an average processing time of three months.

Other measures already introduced include increasing the reporting threshold for regional grid lines from 15 km to 50 km, suspending external quality assurance and regulatory processing of concept studies for major new transmission lines, and transferring decision-making authority for major new electricity lines from the King in Council to NVE.

Licensing authorities have also received significant increases in case-processing capacity, while greater emphasis has been placed on digitalising planning and licensing procedures.

Grid companies are now required to assess whether projects seeking to increase or expand capacity are sufficiently mature to reserve that capacity. At the same time, progress requirements have been introduced to maintain capacity reservations.

They are also required to reserve capacity in the regional and transmission grids for customers with normal electricity consumption.

Statnett and NVE to prioritise key projects

For grid development, Statnett will be asked to prioritise projects considered most important for the electricity system and provide regular progress reports.

NVE will likewise prioritise the most important projects and maintain an ongoing dialogue with Statnett through joint progress plans. The prioritisation of energy and industrial development in Finnmark will remain unchanged.

Statnett will further be asked, in dialogue with NVE, to propose how its area plans can be developed into a more strategic planning tool. The aim is to make grid development more efficient and allow specific projects to move more quickly through the licensing process.

Ways of simplifying voltage and temperature upgrades and low-conflict cases in the regional grid will also be examined. One option under consideration is to expand the area licensing scheme to cover more regional grid measures.

In a letter to NVE, the government stressed that regional and transmission grid lines should, as a general rule, be built as overhead lines rather than underground or submarine cables. The stated objective is to reduce costs and ensure an efficient and secure electricity system.

Meanwhile, Statnett and grid companies will be asked to make more efficient use of existing networks so that as many customers as reasonably possible can obtain grid connections more quickly.

Faster development of renewable generation

The package also targets power generation, particularly onshore wind.

The government describes onshore wind as a cost-effective technology that can contribute quickly to increased electricity production, while acknowledging that current processes are often lengthy and conflict-prone.

Municipalities will be given a clearer legal role in deciding whether onshore wind projects can proceed. Legislative changes will establish their right to approve or reject such projects through their own legal provisions outside the Planning and Building Act.

Municipal consent will have to be obtained before NVE makes a licensing decision on an onshore wind project. The exact timing of that consent will be considered during the legislative process and will be subject to a public consultation.

The intention is to simplify municipal processes, reduce conflicts and increase transparency while preserving municipalities’ right to decide whether wind power should be developed in their territories.

“The development of wind power must take place in cooperation with municipalities, not against them,” Energy Minister Terje Aasland said.

Municipal processing will also be simplified by removing the requirement for a zoning plan.

At the same time, existing licensing requirements for wind power will remain. Sami interests and considerations for nature and the environment will continue to form an important part of the licensing process.

Municipalities to receive wind power revenues earlier

Another measure will bring forward the point at which municipalities receive revenues from wind power.

Under the proposed approach, the state would advance revenues from the production fee from the beginning of construction, rather than when a wind farm starts operating.

Further details will be presented in the 2027 state budget.

State planning guidelines will also be amended to encourage municipalities to facilitate greater renewable energy production, including in key industrial and commercial development areas and when enabling new large-scale electricity consumption.

NVE will be asked to prepare guidance for municipalities on how to assess opportunities for local renewable energy production when planning larger development areas.

State administrator to support municipalities

A more supportive role is also envisaged for the state administrator in the development of new energy facilities.

The institution will be asked to assist municipalities and county authorities in establishing new power generation facilities and to contribute to the correct implementation of rules governing electricity grid development.

Clearer management signals will also be provided on facilitating increased energy supply and grid development.

At the same time, state environmental authorities will be asked to prioritise energy-related cases. The Norwegian Environment Agency, together with NVE, will develop a simplified and standardised methodology for assessing measures related to energy and electricity grids.

Effects expected beyond the current parliamentary term

The measures are expected to have their full effect towards the end of the current parliamentary term and beyond the 2030s, although some changes are also expected to deliver results in the short term.

The government acknowledges that the time required to develop a new grid varies from project to project because of technical and natural conditions, the level of conflict and factors outside the control of authorities and grid companies, including delivery times for equipment and components.

Closer cooperation between authorities and grid companies will nevertheless be essential to ensure faster access to the grid and more efficient use of existing infrastructure.

Taken together, the reforms are intended not only to accelerate individual licensing procedures but also to change how Norway plans and prioritises its electricity infrastructure.

The government said the development, maintenance and efficient operation of the electricity grid are necessary to maintain the functioning and resilience of society and represent an important part of national security.