As of August 2026, the Norwegian TSO Statnett has reserved capacity in the power grid for 7,715 MW of consumption, and the queue – now at 15,997 MW of power consumption – continues to grow. While grid capacity is one of the most important value drivers for any power intensive industry, Statnett and other connecting grid companies serve as gatekeepers for new projects seeking access to the grid. Only projects that are considered "mature" will be awarded a grid capacity reservation or a position in the grid capacity queue.
Responsibility for conducting the maturity assessment varies with the amount of requested capacity. The local grid company is responsible for projects below 10 MW, the regional grid company for projects in the 10 to 99 MW range, and Statnett for all projects of 100 MW and above. Read our previous article for more information about the maturity criteria pursuant to section 3-4 of the NEM regulations.
Two sets of new standard maturity requirements from Statnett and the industry organisation Renewables Norway, both effective from 1 July 2026, tighten the conditions for obtaining and retaining grid capacity rights.
The most significant change is Statnett's new zoning requirement that takes effect for applications of 100 MW or more, and somewhat lighter zoning requirements in Renewables Norway's best practices for applications below 100 MW.
Further key changes include:
- the project completion period is cut from ten to six years, as a main rule,
- delays of more than one year (for causes for which the applicant is directly responsible) or two years (for causes the applicant bears the risk or is indirectly responsible) now trigger a cancellation process, and
- financing must now be evidenced by binding documentation at each project phase, and full financing must be confirmed at FID.
All new applicants from 1 July 2026 are subject to the new requirements in full. Projects already in the capacity queue or holding existing reservations are also affected, subject to transitional rules described at the end of this newsletter.
Stricter zoning requirements
What approved zoning to the correct land use purpose means
As both Renewables Norway's best practices and Statnett's maturity requirements from 1 July 2026 apply stricter zoning requirements, we will start by explaining what it means for a project site to be formally zoned for the correct purpose of land use (Nw. arealformål).
Norwegian land use planning operates on two tiers
At the upper tier, the municipal plan (Nw. kommuneplanens arealdel) allocates land to broad categories – such as residential, commercial or agricultural use – across the entire municipality. At the lower tier, a zoning plan sets binding, site-specific rules for how a defined area may be used and developed. Only the zoning plan designates land to a specific land use purpose, including a precise category that determines what type of project may lawfully be established on the site.
"Approved zoning to the correct land use purpose" therefore means that the project site is covered by an adopted zoning plan that designates the land to the specific purpose corresponding to the type of project for which grid connection is sought — for example, industrial use for a manufacturing facility, or the relevant category for a data centre. A generic commercial designation in the municipal plan does not qualify.
Previously, there was consensus that the land use purpose "industry" (Nw. industri) in a zoning plan encompassed data centres. In 2023, however, the Ministry of Local Government and Regional Development (Nw. Kommunal- og distriktsdepartementet) concluded that the correct land use purpose in a zoning plan for data centre operations was "other commercial use" (Nw. annen næringsvirksomhet), not industrial use. This interpretation was subsequently upheld by the Norwegian Court of Appeal. Furthermore, a new mapping and planning regulation (Nw. Kart- og planforskrift) entered into force on 1 July 2025, introducing data centre purposes as a separate land use purpose in zoning plans. This means that zoning plans adopted prior to 1 July 2025 must designate the land for other commercial use, whereas zoning plans adopted after 1 July 2025 must zone the land specifically for data centre purposes, in order for data centre operations to be permitted under the applicable zoning plan.
Zoning requirements for projects below 100 MW
For projects below 100 MW where there is no applicable zoning plan, or the site is not zoned for the correct purpose, it is required that:
- the land is designated to the correct purpose in the municipal plan, and,
- as a minimum, a startup meeting (Nw. oppstartsmøte) has been held with the municipality, resulting in written confirmation authorising the start of the zoning process, or documentation that a zoning process has been initiated by the municipality itself.
In all cases, a zoning plan must be approved no later than two years from the maturity date.
Zoning requirements for projects of 100 MW or more
For projects of 100 MW or more, Statnett requires that an adopted zoning plan is in place, documenting municipal approval of the necessary land use for the specific project.
Under the requirements applicable prior to 1 July 2026, it was sufficient that a zoning process had been initiated and would be completed "within reasonable time". A site designated for commercial use (Nw. næringsformål) in the municipal plan was accepted as adequate documentation – combined with an assurance that a zoning plan would follow.
The land required for the project must now be zoned to the relevant land use purpose. The change, in essence, represents a shift from a "work in progress" acceptance to an absolute requirement that the necessary planning approval is actually in place at the time of application. For data centre projects specifically, this generally means that the relevant land must be zoned for data centre purposes in the applicable zoning plan.
Land access – option agreements and expropriation under scrutiny
Exclusive access
Under both frameworks, the applicant must confirm binding and exclusive access to all land required for the project. Three alternatives qualify under this requirement:
- ownership of the required land;
- a concluded purchase agreement or lease agreement for the land; or
- an option agreement for the purchase or lease of the land.
Where an option agreement is relied upon, the following specific requirements must be met:
- the option holder has the right to purchase or lease without further negotiation;
- the required land is clearly defined;
- the price is finally negotiated;
- the option period has not expired;
- the option grantor is the landowner; and
- the option holder is the customer/applicant.
Expropriation as an alternative path – conditions and required documentation
Under both frameworks, expropriation is available as a substitute for private-law land agreements, but only where it is demonstrably realistic. An applicant that relies on expropriation instead of voluntary land access must satisfy the following requirements:
- document that the project is of a nature for which expropriation is legally available and, in all probability, will succeed – a general reference to the possibility of expropriation is insufficient;
- provide a plan for the expropriation process; and
- incorporate all expropriation milestones as explicit milestones in the project schedule.
Expropriation does not discharge the parallel zoning requirements. Both must be satisfied independently.
"Expropriation – previous practice"
Statnett has previously been criticised for giving insufficient weight to the expropriation route in practice. The Regulatory Authority for Energy (RME) issued a decision on 8 June 2026 in a complaint case brought by Norge Mineraler. The RME found that Statnett's firm requirement to document binding land agreements breached the customer's right to market access in this particular case. They emphasised this project's immobility, the number of affected landowners and the likelihood of expropriation as a possible pathway.]
Project completion period reduced from ten to six years
The maximum time limit for implementing the project that requires grid capacity rights is as a main rule shortened from ten to six years from the maturity date. This reduction applies across all projects. The available exceptions to the six-year horizon do, however, differ between the two frameworks.
Three main exception categories are available under Renewables Norway's revised best practice:
- dependency on grid reinforcements preventing connection within six years,
- innovation or pilot projects requiring technology development before full deployment, and
- public infrastructure with inherently long lead times.
Exceptions must be substantiated in the application. Time spent in the capacity queue does not count towards the six-year period.
The same main six-year rule applies to Statnett's requirements, but only the exceptions concerning dependency on grid reinforcements (Statnett must have reached at least a "BP0" decision, which entails that a concept selection has been made and project start-up has been decided) and innovation or pilot projects are available as a starting point. The burden of proof lies with the applicant.
"Innovation or pilot projects starting points"
Innovation or pilot (both frameworks): The project must require concept or technology development, piloting or demonstration before full deployment, for example CO2 capture in cement, fertiliser or metals production.
Financing – proof, not plans
Under both frameworks, capital cost estimates must be qualified and substantiated across all project phases. A high-level range is no longer sufficient. Financing for the current project phase must be evidenced through a board resolution, a loan confirmation, or equivalent documentation. A statement of intent does not qualify. At FID, full project financing through construction up until commissioning must be confirmed. Any dependency on external funding must be explicitly disclosed, and the risk of funding not materialising must be addressed in the financing plan. All financing milestones must be incorporated into the binding progress plan.
New cancellation thresholds – constraining the exercise of discretion
Both frameworks introduce clear and defined limits for what counts as a material delay in the applicant's project.
A delay of more than one year in milestones for which the applicant bears direct responsibility will normally constitute a material delay.
For milestones involving matters for which the applicant bears the risk or is indirectly responsible, the threshold is two years. A longer delay may trigger a formal cancellation process, in which the customer is given a right of appeal to the RME.
We note that "material changes" is a legal standard introduced in section 3-4 of the NEM regulations, and that – despite the aforementioned best practices – each project should be considered individually. The best practice framework will nevertheless give an important guidance on how the grid companies may be expected to apply this legal standard.
"Direct and indirect responsibility starting points"
- Direct responsibility includes project concept changes, FID, private agreements, and financing
- Indirect responsibility includes licences from the Norwegian Water Resources and Energy Directorate or the Norwegian Ministry of Energy, approvals from the Norwegian Directorate for Civil Protection, pollution permits, and appeal processes
Transitional rules
Under Renewables Norway's best practices, the new cancellation thresholds apply immediately to all projects under review. In connection with the publication of the updated best practice document, Renewables Norway informed that projects already holding a reservation or a position in the capacity queue will, as a starting point, have six months to update their maturity plans. For the zoning requirements, a two-year grace period applies.
For Statnett's framework, the transitional rules are differentiated by project category and topic. On project documentation, projects with existing capacity reservations must be compliant by 1 January 2027.
On zoning, capacity queue projects must have the required approvals in place by 1 July 2028. Projects with existing reservations are subject to strict follow-up of previously agreed milestones, where a delay of more than two years will trigger a formal cancellation process. Notably, delays attributable to the municipality's own planning procedures do not exempt the project from these consequences.
The financing and monitoring requirements are not subject to any transitional provisions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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