Norway's oil and gas sector targets tax breaks for wind drive

摘要

A proposal that would use temporary Covid-19 tax relief for oil and gas investments to boost Norway's offshore wind capacity could be headed for a conflict with lawmakers just as the nation opens a significant slice of its continental shelf to wind development. Through the Confederation of Norwegian Enterprise (NHO), some of Norway's largest companies - including Equinor, Aker ASA, power company Statkraft, and the Eni and HitecVision renewables joint venture Vaar-gronn - have proposed that oil and gas producers be allowed to sign long-term power purchase agreements (PPAs) with companies delivering wind power from the Norwegian shelf. However, this will only be possible if the investments from wind power companies come under the petroleum tax regime, where the temporary relief measure effectively means the government covers up to 90% of the cost of oil and gas developments sanctioned before the end of next year.