Norway will speed up onshore wind power developments, government says

By Nora Buli

OSLO, Aug 7 (Reuters) - Norway's government on Friday presented plans to cut red tape and shorten processing of applications to build new onshore wind power plants and transmission lines, amid concerns that a slow buildout in recent years could curb economic activity.

The Labour Party government aims to cut in half the time it takes to develop grids by simplifying application processes and removing bureaucratic obstacles, Prime Minister Jonas Gahr Stoere told a press conference.

"Faster development of more renewable power and electricity grids is crucial for cutting emissions, boost employment and protect existing jobs and companies," Stoere said.

Developing more wind power is the quickest way to increase Norway's electricity output, and also comes at the lowest cost, Energy Minister Terje Aasland said.

LARGELY BASED ON RENEWABLES

Norway's electricity system is largely based on renewables, dominated by hydropower plants along rivers and reservoirs, most built decades ago, and onshore wind, which rose rapidly between 2015 and 2021.

Since then, the Nordic country has only added about 1,000 megawatts (MW) of capacity, an increase of just 2.5%, driven by a backlash from local residents and indigenous Sami groups against onshore wind development.

One of the measures presented on Friday was a proposal to make wind farms more attractive to municipalities by bringing forward developers' payments based on planned production.

Most years, Norway produces more power than it consumes and is a net exporter of electricity but this surplus is under threat with forecasts for rising domestic consumption as industries make the switch away from fossil fuels.

The country also faces rising interest from data centre operators seeking clean energy input.

National transmission grid operator Statnett in April announced a pause in allocations of new power grid connections to major industrial plants in its Arctic region amid capacity constraints.

(Reporting by Nora Buli, editing by Terje Solsvik)