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Factsheet for measure NO-2021-49/2325 – Updated – measures in Norway

Subsidy for electricity costs in the agricultural sector and greenhouse industry

Strømstøtte til landbruksnæringen

Country Norway , applies nationwide
Time period Temporary, 01 December 2021 – 31 December 2024
Context COVID-19, War in Ukraine
Type Legislations or other statutory regulations
Category N/A
– Support for energy bills
Author Aasmund Arup Seip, FAFO and Eurofound
Measure added 18 May 2022 (updated 06 March 2023)

Background information

As a result of increased energy prices in the autumn 2021, the government introduced a temporary electricity support scheme for households that compensate for extraordinarily high expenses for electricity consumption (see related case Electricity Support Act: reducing household electricity costs ). In January 2022, a corresponding scheme was established for the agricultural and greenhouse industry with application for the period 1 December 2021 to 31 March 2022. On 10 March 2022, the government extended the scheme until March 2023, and in April 2022, the scheme was extended to include irrigation cooperatives.

Content of measure

The scheme for electricity support for the agricultural and greenhouse industry is based on the same model as the electricity benefit scheme for households. For the agricultural industry, the scheme is limited to a maximum consumption of 20,000 kWh per month per enterprise. The scheme for greenhouses only covers enterprises that have actual electricity costs above NOK 0.7 (€0.07) per kWh and have no maximum limit on consumption per enterprise.

Like the electricity support scheme for households, the state covers 55% of electricity costs over NOK 0.7 (€0.07) per kWh for December 2021, and 80% for January to March 2023 in the scheme aimed at the agricultural sector.

Updates

The following updates to this measure have been made after it came into effect.

15 February 2023

The government reports that the electricity support scheme for agriculture will be extended until the end of 2024 (from a planned end date of 31 March 2023). The electricity support scheme for voluntary organizations follows the compensation rate for households , and the compensation will be 90% of the electricity price exceeding €0.07 per kWh based on an hour-by-hour calculation.

01 July 2022

In May and June 2022, the government carried out a hearing among the branch organisations in the agricultural sector and the greenhouse industry, and in 1 July 2022 a temporary regulation on support to agricultural producers, greenhouses and irrigation systems was laid down. As for households, the support was set to 80% of the cost above the threshold value of NOK 0.7 (€0.07) per kWh. However, the aim was that the support should stay at this level throughout the support period (December 2021 – March 2023), and not increase, like the support for households.

Use of measure

NOK 500 million (€50 million) has been allocated to the electricity support scheme for the agricultural and greenhouse industry.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown

Involvement

No information on social partners involvement during design and implementation of the measure.

Views and reactions

Supported by the organisations in the agricultural sector.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2022), Subsidy for electricity costs in the agricultural sector and greenhouse industry, measure NO-2021-49/2325 (measures in Norway), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NO-2021-49_2325.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.