The licensing authorities are responsible for processing and approving applications for licenses. As regards hydropower in general, authority is delegated from the King in council to the Ministry of Energy, and further to the Norwegian Water Resources and Energy Directorate (NVE). For hydropower plants smaller than 1 MW, authority is delegated to the local municipalities. The licensing authority under the Energy Act is delegated from the Ministry of Energy to NVE. This includes installations for the production of electricity, such as wind power plants and solar power plants, district heating plants and electrical grid installations. Windpower plants smaller than 1 MW (maximum 5 turbines) and solar power plants smaller than 10 MW do not require a license, but are processed under the Planning and Building Act by the local municipalities. A description of the different licensing processes under the Watercourse Regulation Act, Water Resources Act and the Energy Act is given below.
The licensing procedure under the Watercourse Regulations Act is to a large extent the same for all kinds of hydropower projects. Whether a project requires a notification with a proposed program for an environmental impact assessment (EIA), is however what usually separates large projects from small scale ones. Furthermore, “small scale” projects are processed under the Water Recources Act. Small projects refer to projects with a planned annual mean production below 40 GWh, or with a flow rate regulation below the limit that requires a license under the Watercourse Regulation Act. Larger projects are processed under the Watercourse Regulation Act.
Per the regulations of 21. June 2017 nr. 854 on environmental impact assessments (the EIA regulations), all hydropower plants with an annual mean production larger than 40 GWh always require an EIA. Other projects need to meet the regulation’s demands for EIAs, as per the EIA regulations § 7.
If the project is subject to Annex I of the EIA regulations the process starts with a notification with a proposed program for the EIA. The notification is published to be publicly reviewed and is sent to hearing among local authorities and organisations. When the EIA is concluded, the assessment is presented together with the license application.
The license application, together with the EIA, is put through a public hearing for comments. NVE will then perform an overall assessment of the project. A license is granted if the overall benefits of the project exceed the damages, as per the Watercourse Regulation Act § 5 and the Water Resources Act § 25.
Hydropower plants with planned annual mean production below 40 GWh are not subject to notification requirements as per the EIA regulations § 7 and Appendix II. In such cases, the process starts with an application to NVE, accompanied by any required EIA documentation, which is the ordinary licensing procedure under the Watercourse Regulation Act and the Water Resources Act. Supplementary assessments may be required if the application does not provide sufficient information regarding the impacts. Even though a project is not subject to the requirements of the EIA regulations, the impacts of the project need to be thoroughly described as part of the application.
Power plants with an installed capacity below 10 MW and without a flowrate regulation exceeding the licensing threshold under the Watercourse Regulation Act, are subject to simplified procedures, which allow for faster processing. In June 2007, the Ministry published “Guidelines for small scale hydropower plants” to support regional planning and ensure integrated, efficient and predictable licensing procedures.
For power plants between 1 and 10 MW, a study of the biodiversity that may be impacted, is required. In accordance with the Planning and Building Act, public notice of the application is announced in local media, made available for public inspection, and sent to hearing to affected authorities, organisations and landowners. Subsequent to the hearing, an on-site inspection is usually carried out before a license decision is made.
License decisions made by NVE may be appealed. The Ministry is the appeal body. In case of an appeal on NVEs license decision, an ordinary appeal process, in accordance with the Public Administration Act, follows. The appeal is sent to NVE. NVE considers whether to uphold its decision or not. If the decision upheld, the appeal is forwarded to the Ministry. The Ministry’s decision is final and cannot be appealed further.
Municipalities are the licensing authority in procedures concerning hydropower plants smaller than 1 MW (mini- and micro hydropower plants), except for projects located within protected river systems. All applications for mini and micro hydropower plants must first be submitted to NVE, for an assessment on how the application is to be processed.
Licensing Authority
The Energy Act requires anyone who builds, owns or operates an installation for the production, transformation, transmission or distribution of electrical energy to hold a licence. A license is needed for building, owning and operating a high voltage electrical installation. Wind power plants with an installed effect of more than 1 MW and solar power plants with an installed effect of more than 10 MW also require a license under the Energy Act.
The Norwegian Water Resources and Energy Directorate is the licensing authority for electrical installations. The Directorate’s decisions may be appealed to the Ministry of Energy.
Grid Installations Which Starts With a License Application
Applicants for projects concerning electrical power lines with voltage lower than 132 kV, or electrical power lines with a voltage of 132 kV shorter than 15 km, do not have to send a notification before the application. Applications for transformer stations also do not need to send a notification before the application. The Directorate holds consultations and makes information available to stakeholders, and may also organise public meetings as part of the licensing procedure. The Directorate’s licensing decision can be appealed. If the Directorate upholds its decision, the appeal is sent to the Ministry of Energy, which handles the case in accordance with the Public Administration Act. The Ministry may, if necessary, inspect the site before it makes a decision. The Ministry’s decision is final and cannot be appealed. In larger projects, there is normally a condition that the licensee must make a detailed plan for both the construction and operation of the installation. This detailed plan must be approved by the Directorate before the licensee can start the construction work.
For smaller and simpler cases, The Directorate can put the licensing case on a “fast track”. Fast track implies a quick process for handling well-prepared applications for projects that entail a minor or insignificant impact to public and private interests. For fast-track processing, the applicant must meet several requirements. These include consultations with relevant authorities and affected landowners and interest holders. The applicant must also complete an evaluation demonstrating that the potential damages are small, and a clarification with the owner adjacent grid infrastructure that the necessary capacity is available.
All licence applications under the Energy Act require an environmental impact assessment (EIA) according to the EIA regulations. Projects that do not require a notification must still perform an EIA prior to the submission of the licence application. The EIA must be submitted together with the licence application.
Additionally, for new grid installations with a voltage of 47 kV or higher, the applicant must have made a choice of concept prior to sending in a license application. The choice of concept must be made in accordance with the regulation on energy assessments (“forskrift om energiutredninger”).
Grid Installations Which Requires Notification According to the EIA Regulation
New power lines longer than 50 km and voltage of 132 kV, as well as new power lines with voltage higher than 132 kV and longer than 15 km, are required to send a notification together with a proposed programme for the EIA prior to the application stage. The notification of the project shall describe the visual impact of the grid infrastructure, the affected area and the consequences regarding the environment and society. The notification shall also describe relevant and realistic alternatives, and how these alternatives shall be considered in the EIA. The applicant needs to present a proposal for programme of the EIA that describes the possible investigations and possible methodology. These documents will be part of a public hearing by the Directorate. Based on the proposal for the EIA-programme and the received testimonies of the hearing, the Directorate will decide on a final programme for the EIA. After this, the applicant can submit an application for the license, with the necessary impact assessments in accordance with the final programme.
The Directorate will perform a public hearing of the application, inspect the area and hold public meetings. If Directorate’s decision is appealed, the appeal will be handled by the Ministry, as described above. In larger projects, there is normally a condition that the licensee must make a detailed plan for both the construction and operation of the installation. This detailed plan must be approved by the Directorate before the licensee can start the construction work.
Wind power plants and solar power plants of a certain size require a license under the Energy Act. Wind power plants consisting of five turbines or less, or with an installed effect of 1 MW or less, do not require a license. Such wind power plants are handled by the local municipalities in accordance with the Planning and Building Act. Similarly, solar power plants with an installed effect of 10 MW or less are handled by the local municipalities.
Wind power plants and solar power plants with an installed effect of more than 10 MW requires notification according to the EIA regulation. The license processing is the same as for grid installations.
Many factors affect the time spent on processing license applications, for example the conflict level and complexity of the individual project. Hydropower and energy projects generally have impacts on commerce and industry, local communities, the environment and other user interests. The licensing authorities are responsible for ensuring that a project has been thoroughly assessed and described before a decision is made. They must also consider the need for additional studies of various topics and supplementary statements on issues raised during the licensing procedures. It is important to ensure that license applications are properly and thoroughly assessed, and that procedures are as efficient as possible.