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Norway

Norway

Just two projects picked for capital subsidies

Norwegian agency ENOVA, the renewable energy financing arm of the oil and gas ministry, last month announced that just two of seven wind projects vying for a pot of capital subsidies will be supported during this round of funding. Jaeren Energi, owner of the proposed 74 MW Høg-Jaeren wind project of 2.3 MW turbines, scheduled for completion in 2011, is to receive NOK 332 million (EUR 33.5 million). Estimated annual production is 228 GWh. Kvalheim Kraft is to get NOK 93 million (EUR 9.4 million) to further develop the Mehuken project in Vågsoy, which is currently made up of five turbines with a total capacity of 4.5 MW. Eight new 2.3 MW turbines will be added, to bring total energy production from Mehuken to more than 60 GWh annually when it is completed in 2011. Far from everyone is pleased with ENOVA's decision. The five projects with building permits that did not receive grants are Ytre Vikna (249 MW), Tysvaer (30 MW), Kvitfjell (200 MW) Nygårdsfjellet II (40 MW), and Midtfjellet (150 MW). Renewable energy lobby group ZERO points out that funding all seven permitted projects would have put Norway in reach of its 3 TWh a year production target for wind power, set in 1999. Once Høg-Jaeren and Mehuken go online, Norwegian electricity from wind power will be no more than 1368 TWh. ENOVA says it will undertake a new round of funding in 2009.

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