The Norwegian government initially proposed to reduce the threshold for the resource rent tax on small hydropower plants from the current level of 10 megawatts to 1.5 megawatts. However, by November, it became clear that this proposal lacked support from the parliamentary majority, with the Center Party aligning with the opposition parties to advocate for scrapping these plans altogether. Consequently, a proposal to abandon the tax reduction is scheduled for discussion in the Storting, and it is expected to pass with a majority vote.

The Storting has directed the government to maintain the current threshold for the resource rent tax and natural resource tax on hydropower during this parliamentary period. Additionally, the majority has urged the government to instruct the Norwegian Water Resources and Energy Directorate (NVE) to expedite the processing of small hydropower concession applications that can effectively enhance the power balance in the country. This shows a clear shift in focus towards supporting small-scale hydropower projects crucial for Norway's energy landscape.

Erling Sande from the Center Party highlighted that several small hydropower projects were stalled due to the government's tax proposal. He emphasized the importance of predictability and trust between the state and project developers in ensuring the successful expansion of Norway's renewable energy capacity. The decision underscores the government's responsiveness to parliamentary dynamics and the importance of maintaining support for renewable energy initiatives in the framework of Norway's energy transition.