The Energy Regulation and Markets Review - Stikeman Elliott

Chapter 18
Norway
Per Conradi Andersen and Christian Poulsson 1
I
OVERVIEW
The Norwegian onshore energy sector is almost entirely based on electricity generated by
hydropower. Other energy sources play a rather modest role in the onshore energy sector.
Hence, the description in this chapter will focus on electricity generated by hydropower.
The Norwegian electricity sector is highly influenced by public ownership
combined with tough restrictions on private ownership. This does not necessarily differ
from other countries around the world, but stands in contrast to the fact that Norway
has since 1990 had a well-functioning market for electricity and connected commodity
derivatives ahead of most other countries.
Main sources of law are the Industrial Concession Act, the Watercourse Regulation
Act, the Energy Act, the Water Resources Act and the Ocean Energy Act.
II
REGULATION
i The regulators
The Ministry of Petroleum and Energy (the OED) holds the overall administrative
responsibility for energy and water resource management in Norway. The Ministry is
responsible for ensuring that the resource management is carried out in accordance with
guidelines given by Parliament.
The Norwegian Water Resources and Energy Directorate (‘the NVE’) is a
subordinate agency of the Ministry. The NVE holds the managing responsibility
according to the Energy Act and the Water Resources Act. Furthermore, the NVE assists
the Ministry of Petroleum and Energy in managing the Industrial Concession Act and
the Watercourse Regulation Act. The NVE has legislative powers to issue regulations and
1 Per Conradi Andersen and Christian Poulsson are partners at Kvale Advokatfirma DA.
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