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Annex B9. Norway Instruments Renewable heat policy CO2 tax exemptions Imposed connection to district heating Renewable investment support Enova SF energy fund Incentives for non-electric heating technologies Basic fund for renewables and energy efficiency Carrot. A CO2 tax has been imposed in Norway since 1991 from which renewable energy projects are exempt (IEA, 2005). Stick. As of 1999, local authorities were given the ability to impose a mandatory connection of new buildings to district heating plants. This regulation, Imposed Connection to District Heating, applies to district heating plants greater than 10 MW (IEA, 2004). Carrot. From 1999-2002 the Norwegian government exempted investments in renewable energy, heat pumps, and district heating from the general 7% investment tax under a Renewable Energy Investment Support (RE Tax Treatment) scheme. With the abolition of the general investment tax in April 2002, this support scheme was also completed (IEA, 2004). Carrot. Enova SF, a new state-owned central agency of the Norwegian Ministry of Petroleum and Energy, was established in June, 2001 to manage the Ministry’s energy fund. The Enova SF Energy Fund has provided investment support for new energy technologies and education measures for industry commercial and household sectors since January 2002. Its aim is to reduce the use of electricity for heating purposes and to promote new environmentally friendly forms of energy production (SHC, 2006). A target for renewable heat was set at 14.4 PJ annually, being equivalent to the heat requirements of over 100 000 Norwegian households. This target was based on a total renewable energy goal of 43.2 PJ by 2010. A budget of €680 M (NOK 5.6 billion)81 was established for the first ten-year period from which the Enova Energy Fund received approximately €81.6 M in 2006. Initially funds came in part from a €0.0012 /kWh levy on electricity transmission tariffs and in part from the national budget (IEA, 2004; SHC, 2006). From 2005 the Energy Fund is fully financed by the grid tariff supplement. Because there is a time gap of typically 2-3 years between the confirmation of funding from Enova and the initiation of project construction when the subsidies are awarded, there is a discrepancy between the yearly amount granted and paid (Table B6). Enova has designed a programme specifically for renewable heating in order to achieve its specified targets by supporting new heating plants, distribution systems for heating, and sustainable supplies of biomass. It provides economic support for projects throughout the value-chain from extraction, transport and production of biomass, to the development of heating plants and distribution systems. Very little support is available for solar thermal. 81. 1 Norwegian krona (NOK) = €0.12 181 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006PDF Image | RENEWABLES FOR HEATING AND COOLING
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