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Norway to subsidize renewable power production from 2008  

The Norwegian government is to subsidize energy produced from
renewable sources from 2008, the energy ministry said Thursday.
Under the new system, producers of wind power will receive NOK80/MWh
($12.08/MWh), while producers of power from biomass will receive
NOK100/MWh. In addition, hydro power producers will receive NOK40/MWh for the
production representing the first 3 MW of the capacity in the plants.
The ministry said the subsidies will be paid over a period of 15 years.
All power plants developed or those which were started developed after January
1, 2004 will be included in the new system.
“There is a huge interest in developing wind power, and there is a
considerable number of smaller hydro power projects which are ready to be
built. By establishing this subsidiary system for renewable power production,
the government has paved the way for new production. Now the industry has to
take its share of the responsibility…” said Norway’s energy minister Odd
Roger Enoksen in a statement.
Furthermore, the energy ministry will, as previously announced in June,
outline proposals for a NOK20 billion fund to support increased production of
renewable energy in Norway. The proposals will be presented
in the national budget for 2007, which is to be presented to parliament


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