Kraftstøtte

Kraftstøtte is a term used in Norwegian and Danish energy policy to describe public or regulatory support provided to the electricity sector in order to promote a stable power supply and affordable prices. It encompasses financial incentives for electricity producers and policy measures that influence the profitability and viability of generation and distribution.

Kraftstøtte can take various forms, including price-based mechanisms such as feed-in tariffs or premium payments, capacity-based payments to ensure sufficient generation capacity, and market-based instruments like contracts-for-difference. It can also include capital subsidies, tax incentives, or loan guarantees designed to reduce investment risk for generators and infrastructure projects.

Implementation is typically managed by government ministries or energy regulators and must often comply with state aid rules, especially in the EU/EEA. The design of kraftstøtte affects which technologies receive support, how costs are distributed among consumers, and how competition in electricity markets is shaped.

Proponents argue that kraftstøtte helps accelerate investment in renewable generation, maintain reliability, and shield consumers from price volatility. Critics warn that poorly designed schemes can distort competition, raise household bills, or favour incumbent producers. Ongoing evaluation and adjustment are common to maintain balance between objectives and market fairness.

See also energy policy, state aid, feed-in tariff, capacity mechanism.