The Norwegian Government proposes to allocate NOK 20 billion (approx 2.3 billion Euros) in a new fund to strengthen the efforts in increasing production and use of renewable energy and increased energy efficiency. The first NOK 10 billion are proposed allocated in the state budget for 2007 presented to the Storting 6 >October 2006. Another NOK 10 billion will be proposed allocated to this Basic Fund in the 2009 state budget.

The Government has established a long term target of 30 TWh production from renewable energy sources and energy efficiency in 2016 over the 2001-level.

When fully allocated, the yield from the new Basic Fund is estimated at about NOK 880 million (approx 100 million Euros) annually when the fund reaches NOK 20 billion. When fully allocated, the yield from the Basic Fund will more than double today’s level of support amounting to approx NOK 700 million, which is financed by a dedicated levy on the distribution tariff. The Basic Fund for Renewable Energy and Energy Efficiency and the new target ensures the necessary long term view in this area.

-These efforts will contribute substantially to the security of energy supply in Norway, and contribute in an important way to reach the Government’s overall objective of a more environmentally friendly and diversified energy supply system, says Mr. Odd Roger Enoksen, Norwegian Minister of Petroleum and Energy.

The state owned agency Enova will manage the yield from the Basic Fund. Enova will establish a support system for district heating infrastructure, and manage a support system for renewable electricity. This will include support for production representing the first 3 MW installed hydropower capacity, which means that Enova’s responsibilities will be expanded.