Mr. Odd Roger Enoksen, Norwegian Minister of Petroleum and Energy, has announced that the Norwegian Government will allocate NOK 20 billion (approx. 2.5 billion Euros) in a fund to strengthen the efforts in increasing production and use of renewable energy and increased energy efficiency. The fund will be allocated NOK 10 billion from 1 January 2007 and another NOK 10 billion on 1 January 2009. The yield is estimated to be about NOK 800 million annually when the fund reaches NOK 20 billion.

This is a doubling of today’s level. Support will be given to increase production and use of bio energy, wind power, small scale hydro power and increased energy efficiency.

The state owned agency Enova will manage the yield from the Fund. In addition to present responsibilities, Enova will be given the tasks to

• expand the infrastructure for district heating
• stimulate energy efficiency and heating based on renewable energy in the household sector
• establish a system for payment against scrapping old oil-fired boilers and stoves

The design of support systems for different activities will be presented in the State Budget for 2007 to be presented to Parliament in October 2006.