New tax proposal for onshore wind and hydropower in Norway
Oslo, Norway, 28 September 2022: Today, the Norwegian Government proposed significant changes to the taxation of Norwegian renewables.
The proposed changes include a new resource tax (“Grunnrenteskatt”) for onshore wind at 40% and a windfall tax for wind and hydropower at 23 % of price above (approx.) 70 EUR/MWh. In addition, they propose an increase in the production tax for onshore wind and the implementation of a nature resource tax (“Naturressursskatt”) for onshore wind that both will be deducted in the resource tax.
Cloudberry acknowledges the need for redistributing some of the extraordinary high income some power producers have seen the last year, but these significant and surprising changes in the regulatory framework represent a real challenge for the industry.
“It is vital that the Government does not impose taxes that will jeopardize the transition to more renewable energy in Norway”, Anders Lenborg, CEO of Cloudberry Clean Energy says.
Cloudberry will need time to assess the consequences and full impact of the proposed changes to our portfolio in Norway. However, currently we primarily see consequences for our wind project in Odal. The proposed changes will not impact the 2022 results and we do not see any impact in our Swedish portfolio.
“At Cloudberry, we work proactively to create value for our shareholders and local stakeholders, and we are positive with regards to the redistribution of taxes to municipalities through the proposed increased production tax and the nature resource tax. This will increase the total compensation for the host municipalities”, Lenborg says. “However, we are worried that the sudden implementation of significant higher taxes will have a long-lasting negative effect on the development and production of renewable energy in a time where the need for more renewable energy is high”, Lenborg concludes.
For further information please contact:
Anders Lenborg, CEO, +47 934 13 130, firstname.lastname@example.org
Christian Helland, CVO, +47 418 80 000, email@example.com
Cloudberry is a renewable energy company operating in the Nordics and in accordance with local traditions. The Company owns, develops, and operates hydropower plants and wind farms in Norway and Sweden. Cloudberry is powering the energy transition to a sustainable future by providing new renewable energy today and for future generations. The Company believes in a fundamental long -term demand for renewable energy in Europe. With this as a fundament, Cloudberry is building a sustainable, scalable, efficient, and profitable platform for creation of shareholder value. Cloudberry`s shares are traded on Oslo Stock Exchange's main list (Oslo Børs), supported by strong owners and led by an experienced team and board. The Company has offices in Oslo, Norway (main office), Karlstad, Gothenburg and Eskilstuna, Sweden. To learn more about Cloudberry, go to www.cloudberry.no