“The countries’ mismatched tax rules threaten to deny Norway investment in an industry where jobs will triple by 2030, according to the European Wind Energy Association in Brussels. While Statkraft AS, Norway’s state-owned power company, didn’t build any wind projects in its home country in the eight years through 2013, it spent as much as 7.5 billion kroner ($1.2 billion) on turbines in Sweden” (renewableenergyworld.com).
In other words, it makes financial sense for Norwegian’s to invest in Swedish energy companies, however, if Norway gets back on track, renewable energy will become one of the hottest explosive markets as its expected to boast triple the jobs in 2030 that it has now. At its current rate, the treaty’s policy favors investment in the Swedish market even though it was not what policy makers intended to happen. Norway’s Liberal Party is planning a proposal to alter the country’s tax laws in preparation for a renegotiation of the treaty’s budget. With a current gap in depreciation rates of wind turbines between the countries, it allows the turbine owners with a slower depreciation rate to write off more of their income as nondeductible. Hopefully, with the new shift in tax laws and depreciation rates, Norway will be able to regain momentum on its massive project and attain their desired goal by 2020.