OES Annual Report 2012 - Ocean Energy Systems
OES Annual Report 2012 - Ocean Energy Systems
OES Annual Report 2012 - Ocean Energy Systems
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64<br />
NORWAY<br />
Carl Gustaf Rye-Florentz<br />
NORWEA<br />
INTRODUCTION<br />
Due to the good energy resource and pragmatic consenting process for small scale test installations in the<br />
sea several developers continue their development work in Norway. The academic R&D activity also remains<br />
strong in all aspects of ocean energy. The governmental support and encouragement for R&D is good,<br />
especially for research. Several prototypes and demonstration units have received public support over the<br />
last years, but it is difficult for developers to achieve private funding.<br />
Norway joined a green certificate market with Sweden on 1January <strong>2012</strong>. One certificate per MWh delivered<br />
is given to all new renewable energy generators for 15 years. No extra certificates are given for ocean energy<br />
generation and hydro, wind and bio power are the only realistic producers that reach grid parity.<br />
OCEAN ENERGY POLICY<br />
Strategy and National Targets<br />
Norway has no special policy for ocean energy, but ocean energy is included in more general renewable<br />
energy policies and programmes. An updated governmental strategy for ocean energy is expected in 2013.<br />
Support Initiatives and Market Stimulation Incentives<br />
In 2011, Norway and Sweden signed an agreement for a joint green certificate market. From <strong>2012</strong>, one certificate<br />
per MWh will be given to all new renewable energy generation in 15 years, independent of technology.<br />
The price per certificate is driven by the market with a common target of 26.4 TWh by the end of 2020. The<br />
total compensation (el-spot + certificate) for the renewable producers are in the long term believed to be<br />
approximately €70-80 /MWh.<br />
A total income of €70-80/MWh is almost certainly not enough for wave and tidal projects in the next<br />
decade. Instead, the governmental support programmes for research and development are intended to<br />
drive the development.<br />
The Norwegian petroleum tax system offshore has an income tax of 78%, but has special benefits for energy<br />
production when used to oil and gas production. <strong>Ocean</strong> energy plants could benefit from the favourable<br />
depreciation rules. The possibility of including offshore wind farms is currently being discussed.<br />
Main Public Funding Mechanisms<br />
The Norwegian <strong>Energy</strong> Agency, Enova, offers capital grants for full-scale demonstration projects of ocean<br />
renewable production. While up to 50% of eligible costs can be covered, Enova’s funding measured in absolute<br />
figures is limited. In addition, Enova has a programme that supports demonstration of new energy technology.<br />
In 2010, Innovation Norway launched a programme supporting prototypes within “environmental friendly<br />
technology”. <strong>Ocean</strong> energy is included in this definition. Projects are supported with up to 45% of eligible costs.<br />
The Research Council of Norway has an energy research programme called ENERGIX. This programme<br />
supports R&D within all renewable energy technologies.<br />
For <strong>2012</strong>, these three institutions had a combined budget of approximately €110 million.<br />
Relevant Legislation and Regulation<br />
The <strong>Ocean</strong> <strong>Energy</strong> Bill, which regulates renewable offshore energy production, entered into force on 1 July<br />
2010. According to this new legislation licenses to build offshore wind, wave and tidal farms in certain far-<br />
ANNUAL<br />
REPORT <strong>2012</strong>
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