– We don’t dare to invest, and hope the authorities take notice, says John Martin Mjånes, who is managing director of Sunnhordland kraftlag AS (SKL). Last year the government said it would raise NOK 33 billion by increasing taxes on farming and power. The basic interest tax on hydropower rises from 37 to 45 per cent. At the same time, an extraordinary tax on hydro and wind power is proposed due to the very high electricity prices. The power industry responds by dropping investments. These projects are in danger or in danger, according to figures collected by news and Energi Norge: Lyse Energi – Upgrading the hydroelectric power plant in Røldal-Suldal will be cancelled. Cost framework of up to NOK 5 billion. Should double the capacity in the plant to 600 MW. Annual production was to increase by at least 0.2 terawatt-hours (TWh). Hafslund Eco – Ten possible development projects in southern Norway are at risk and, in the worst case, could collapse. Cost framework of NOK 10 billion. Would increase power of 600 MW and increase energy of 700 GWh. Agder Energi – A planned pumped power plant in Bykle is being scrapped. This also applies to several projects that should increase production. Cost framework of at least NOK 11 billion. Eviny – Eviny has five projects that involve the expansion of several hydropower plants in Vestland. Now things are looking up for the project, according to the company. Would provide additional energy of around 80 – 85 GWh. Statkraft – Considering putting off the expansion of the Mauranger 2 power plant in Hardanger. Cost framework of NOK 5 billion. Would have increased power of 630 MW and increased energy of 80 GWh. Sunnhordland Kraftlag (SKL) – Put aside the project Blåfalli Fjellhaugen, which was supposed to increase the ability to produce a lot of power in a short time in the Blådalsvassdraget in Kvinnherad. Cost framework of NOK 1 billion. Would increase power of 160 MW and increase energy of 70 GWh. Hydro – Illvatn pumped power plant in Luster in Sogn is in danger. Cost framework of NOK 1.2 billion. Sognekraft – Now counting on planned investments linked to the Feios and Offerdal power plants. Cost framework of NOK 1.4 billion. Would provide additional energy of 200 GWh Tafjord Kraft – Considering investments linked to two projects in Sunnmøre at NOK 100 million. Altogether, this amounts to investments worth NOK 34.7 billion. LYSE STOPPAR PROJECT: The water power plants in Røldal and Suldal were to be upgraded for five billion kroner. Here from intake in Blåbergdalen. Photo: Lyse Kraft – Can make electricity prices even higher – We have an energy crisis, and then we need more renewable power. With the proposed increased taxes, I don’t see how we will be able to realize new renewable projects, says Kristin Lian, who is managing director of Hafslund Eco Vannkraft. The Hafslund Eco project is considering scrapping New power plants: Upgrading and expansion project: Hemsil 3 Sarp 2 FKF 5 Aurland 1 Vangen 2 Øyangen Transfer Tunna to Savalen Transfer Langavatn to Kallavatn Grotli pump She believes consumers will also lose out from the tax measure. – This will make it difficult to reduce the electricity price. If we do not develop more power, we will have a deficit of energy in Norway. TEN PROJECTS IN DANGER: Kristin Lian in Hafslund Eco Vannkraft says several power plants and upgrades may be shelved. Photo: Bård Siem / news – The government set aside the green shift to balance its own budget. It is extremely short-term thinking, believes Eivind Heløe, who is director of renewables and the environment at Energi Norge. He points out that we are steering towards a power deficit in 2025 if we do not get access to more clean power. news has tried to get in touch with Finance Minister Trygve Slagsvold Vedum for a comment on this matter, but has not received a reply. Disagreement among the experts Professor Stein-Erik Fleten at the Department of Industrial Economics and Technology Management at NTNU is skeptical about whether the power company will actually stop the project. – It is not particularly credible that the power companies will put investments on hold. – The reason is that this basic income tax is so-called neutral. It is designed to work so that measures and investments that were profitable before the tax increase are just as profitable after the tax increase, he explains. He clarifies that the premise is that the so-called high price tax on hydropower will only be an interim measure. PUMPING POWER PLANT: Aurland 3 is a pumping power plant, where the water is used several times. Energi Norge says such power plants are particularly affected by the peak price tax. Photo: Hafslund Eco Senior economist Åsmund Sunde Valseth in Vista Analysis says it is still unclear whether the high-price tax scheme will be introduced permanently. – But as long as the companies expect that the fee will be relatively permanent, or that similar fees will be introduced again if the electricity price increases, the high price contribution will clearly affect investments negatively, says Valseth. – In the best case, we get a postponement and not a shelving of the project, says Espen Moe, who is a professor at the Department of Sociology and Political Science at NTNU. Economist and professor of renewable energy at Norway’s University of the Environment and Biosciences (NMBU), Kristin Linnerud, also believes that the high-price tax may have consequences for the appetite for investment. – But some of the threats are probably just that, threats.
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35 billion in power investments at risk after tax news – news Vestland
