It is vital that the process focuses on the project's most important aspects: whether or not to grant a license, choice of the right alternative and stipulation of conditions including the rules of operation. The procedures require that the relevant authorities and public are involved in the process at different stages. For smaller projects without notification time for the licensing process takes from one year to five years, with two/three years on average. For bigger projects with notification the procedures take from two to six years or more. The time needed for approval depends on how controversial the project is, the time used on EIAs, the working capacity of the competent authorities and whether the fixed time limits for comments on the notification and the EIA can be met. Some steps during the process are also dependent on initiatives from the developer. The process is based upon a "one window" approach, which mean that all parts of the total hydropower plant (dam, power station, electric installations, power lines, access roads, quarries and tips) and the corresponding acts and authorities are included in a co-ordinated process. NVE has the responsibility to co-ordinate this process.
Roles. Hydropower developers/applicants are mostly companies owned by municipalities or counties alone or some combinations thereof. "Statkraft" which owns 25-30% of the developed hydropower in Norway, was separated from NVE in 1986 and is now organised as a state company. The state company is required to meet the same licensing procedures as other companies. Private companies may also be granted licenses, but may be faced with special regulations in the acquisition act regarding approval of the purchase of waterfalls.
Competent authority (NVE/OED). The competent authority shall decide whether or not EIAs shall be required for projects. The competent authority shall process the notification and the EA- statement. This includes determination of the content of the study programme and approval of the EA-statement. The competent authority shall co-ordinate processing pursuant to EIA regulations in line with special legislation: Provide correct information to the developers, the related authorities and the public, make the overall evaluation and determine the conditions.
Related authorities. Municipalities. The municipality makes the plans and the EIAs available for the local population. The municipality shall conduct an evaluation process involving local experts and politicians submit their comments to NVE and the county. Counties: The county shall conduct on the process involving local experts and politicians. Directorates and Ministries (environment, pollution, cultural heritage, mining, roads, sea fishing, agriculture). The directorates and ministries shall provide expert comments and propose conditions. Public. (NGOs, local people, landowners): The public is given the opportunity to comment on the plan/notification and application/EIAs.
Notification. The notification is worked out by the developer (future applicant), and contains a description of the project plans, including alternatives, a general description of the area and conclusions about any environmental reports related to the project (in Norway these could be reports made for the master plan). The developer shall also propose an IA programme following the notification. At this stage the developer should not start making any IAs, but the notification is an invitation to all concerned parties to make comments on the project and the proposed IA programme.
Public consultation/public meeting. The notification is then sent to central and local authorities and the public for a consultation. Local people may study the plans at the local post office, library or town hall. When and where the plans may be studied is advertised in the local newspaper. NVE will organise one or more public meetings in the project area to give information about the licensing process and the project plans. It is important to tell the public that at this stage we would like to receive opinions as to alternative plans and possible conflicts related to these plans or parts of the project. Comments on special rights/use of water and area are also of great interest. Separate meetings to inform local administrations and politicians may also take place.
Determination of IA study programme. After a hearing period of a minimum of 6 weeks the IA programme is discussed with the Ministry of Environment (ME) and determined by NVE. The IA-programme may contain one or more topics within the following main subject areas: environment, natural resources and community issues.
Application and IA report. The applicant determines the start of the next stage. He is responsible for the IAs and their quality standards. He may carry out some of the IAs himself or hire experts. At this stage co-ordination and close co-operation between both technical and IA experts is crucial for developing the best hydropower projects or alternatives. It is also of great importance to involve the local people at this stage. After quality control in NVE to check that the application and IA-reports are in accordance with the guidelines and the IA-programme, they are sent on a new public consultation. The application should also contain a proposal for rules of operation for the reservoir and power station.
Public consultation/public meeting. The consultation also involves the central and local authorities concerned as well as the public. Opinions concerning the application and IA-reports are sent to NVE within a fixed time period not shorter than three months. At least one public meeting may also take place in the project area. The applicant is given the opportunity to make comment on the other opinions.
IA-report approval and NVE's overall evaluation. Before the overall evaluation starts, NVE must approve the IA-reports, and confirm that no further IAs are required. At this stage NVE has the application, the IA-reports, the opinions from the concerned authorities and the public together with comments from the applicant. This is the first chance in the process to make an overall evaluation. Before making the final decision NVE's directors and staff meet the local people, politicians and NGOs on the site to hear their opinions and make a final inspection. NVE's recommendation to the Ministry of Petroleum and Energy (OED) contains a brief review of the application, conclusions of the IAs, and opinions from the public consultation, comments from the applicant and NVE's evaluation and conclusion. The evaluation consists of a discussion of all the costs and benefits of the project including environmental issues. It is obvious that environmental aspects have become more important over the years, and both the developers and the authorities are required to operate within certain unwritten environmental standards. We are obliged to comment on every question raised during the hearing. In our conclusion we may choose between alternatives, reduce the scope of the project or even propose rejecting the application. However, we cannot expand the project outside the range of the application. NVE’s recommendation is available for the public.
Conditions. NVE's recommendation for a license also contains a set of conditions regulating the whole "life" of a license: From approval of detailed construction plans regarding landscape, environmental and safety aspects, plant maintenance and even closing down the plant. Owing to these conditions the developer must also take precautions regarding preservation of cultural heritage, pollution and other environmental issues. This could involve constructing weirs, building fish ladders, correcting river courses and removing vegetation from regulated zones. In addition there are requirements as to how the constructions are to be carried out and adapted to the landscape. Finally, the conditions also include construction deadlines and a general cleaning up of the area.
The State Company and companies owned by municipalities and counties receive their licenses for an unlimited period of time. Private companies (more than 1/3 of the shares) receive their license for maximum 60 years with reversion to the state at the end of the period. The entire power station, dams etc. must be delivered to the state in a proper condition without compensation. The conditions can be revised 30 to 50 years after the license has been granted.
The owners of the power stations are also obliged by these conditions to pay annual fees to the municipalities and the state. In addition they may also be obliged to establish special funds to encourage local industry. Along with property and income taxes this make some of these hydro power municipalities wealthy.
The owners of all power plants who use water from reservoirs and who have a license according to the Acquisition Act are obliged to deliver power (10 %) at non- or low-profit cost to the local municipalities. This was originally intended to secure the local power supply, but is now seen as a form of compensation for permission to use the resources and environmental disadvantages. In addition it provides the municipalities with an opportunity to earn extra money by purchasing energy on the market.
Failure to adhere to the agreed conditions can result in a fine and repeated violations may result in withdrawal of the license. Our experience is that the companies seldom violate the conditions. However, the free energy market, and near shortage in the market seems to have tempted some companies to operate on the margin of what is permissible regarding required water levels in reservoirs or minimum water flows.
Rules of operation. NVE also makes proposals for rules of operation, which may differ, from the applicants’ proposals. At a minimum the highest and lowest regulated water levels in the reservoirs have to be stated. Other restrictions such as seasonal variation on the quantity of by-pass water and minimum water flow at any place in the river system in question may be stated if necessary. Examples of very detailed restrictions for the downstream water flow can be found. Compensation water is intended to preserve some of the life in the rivers and the character of the landscape often in combination with weir pools. Fish and fishing, especially involving salmon and trout are often seen as important to preserve. Pollution may be a factor when deciding the value and variation of the compensation water. A number of different user interests may also be considered, such as irrigation, boating, rafting and swimming.
The rules of operation also include rules for flood operation. The main principle is, if possible, the natural flood discharges and increased flood water levels must not increase.
Changes in operation, water levels and water flows must be logged for documentation and control by the authorities. Sometimes the first 5 years of operation are used as an experimental period to optimise the rules of operation for multipurpose use. The rules of operation can also be revised 30 to 50 years after the license is granted.
NVE also has the authority to control the license conditions and rules of operation. The licensees have to pay NVE the full costs for this kind of supervision and control.
Handling by Ministry. NVE's recommendation signed by the Director General and all documents are passed over to the Ministry of Petroleum and Energy (OED). The Ministry puts NVE's recommendation out for a new limited consultation including the ministries and municipalities involved. The larger projects are prepared for discussion by our Parliament. The Ministry alone processes smaller projects, and licenses are granted by the King and the Government. Normally there are merely changes in the final license compared with NVE's recommendation.
Compensation for property and rights of use. The developers are obliges to negotiate with the right holders, or acquire the right to expropriate. The principle is that the right holders are entitled full compensation normally an amount of money (annually or one-off payment). If the negotiations fail, a court of appraisement determines the compensation.
