Aquila European Renewables (AERI) says that the court has ruled in favour of The Rock in the appraisal case in of whether the licences to build the project were valid in relation to the dispute with the reindeer herders. The Rock is a 400 MW wind farm located in northern Norway. AERI says that, in the years leading up to and during the construction of the project, an extensive consultation process has been conducted with various stakeholders, including the reindeer herding district, involved in and affected by the Project. However, despite dialogue and attempts to resolve the underlying issues over time, AERI says that it has not been possible to reach an agreement and so, consequently, the project company asked the court to determine fair compensation for these stakeholders (this was the main purpose of the appraisal case).
During the proceedings, which were heard before the Helgeland District Court between 27 May and 13 June 2024, the reindeer herding district argued that The Rock’s project’s licence was invalid. The decision in the appraisal case was announced on 20 December 2024, where the Court ruled in favour of the project company, noting that the facility licence and expropriation permit are deemed valid.
AERI says that the Court conducted a thorough assessment, after reviewing documents, evidence and statements by witnesses and that it is important to note that the reindeer herding district is now compensated for potential additional work and extra costs when using the migration route through the wind park as stipulated by the Court. The Court ruling includes a compensation payment payable by the Project company to the reindeer herding district of approximately NOK 4.3m, of which AERI’s share equates to approximately NOK 590k (equivalent to EUR 50k), which it says is payable imminently. However, AERi says that, as communicated previously, the developer of The Rock remains responsible for handling the economic impact on the project company associated with the outcome of the appraisal case. It adds that the Norwegian Ministry of Energy has also established a detailed list of mitigating measures that have already made migration easier and will continue to reduce inconveniences for the district in the future.
[QD comment: This outcome isn’t a great surprise. There hasn’t been anything material that has emerged to suggest that the proper permitting process was not followed and, in addition, mitigations have been established to reduce the impact on the herding community. Given that the court had been asked to form an opinion on compensation, there was implicit acknowledgement that some payment was due and the overall quantum, including AERI’s share, looks sensible. It is worth noting that the Court decision can be appealed, and so this may have further to run, but the herding community would likely have to find substantial new arguments to put forward in court if it were to push for a radically different settlement, which looks unlikely at this stage.]
