Prosumer Legislation in Norway: A First Step for Empowering Small Energy Consumers.

Abstract

Electricity generation in Norway is almost totally based on renewable energy sources, mostly hydropower (96.3% in 2016), followed by thermal power (2.3%) and wind power (1.4%). The price of electricity for end-users is also relatively low compared to the rest of Europe. The absence of an immediate need to ‘green’ the energy generation mix any further or to generate cheaper electricity explains the absence, for the majority of energy consumers, of a strong need to start producing electricity themselves and to turn into prosumers. Meanwhile, households and other small energy consumers are becoming increasingly aware of the existing opportunities and may find new financial motivations in higher electricity prices. Together with the direct grants provided by the state enterprise Enova SF for the installation of renewable energy solutions, one of the strongest signals given by the Government in favour of prosumption comes from a recent amendment to the network tariffs legislation, which now provides a clear legal basis for the regime applicable to prosumers, focusing on residential prosumers, small businesses and buildings. This chapter discusses the changes that have been made to the Norwegian legal regime to accommodate the development of prosumers. Section 2 examines how the law defines the concept of prosumers. Section 3 discusses permitting requirements and the prosumers’ rights and duties as to grid and market access. Section 4 gives an overview of the existing financial incentives in favour of prosumption. Section 5 concludes with an assessment of the current legal regime.

Prosumer Legislation in Norway: A First Step for Empowering Small Energy Consumers.