Norway Moves Floater Plans Forward

Wedoany.com Report-Apr. 10, Norway’s Ministry of Energy has submitted a notification to the EFTA Surveillance Authority (ESA) outlining its support framework for floating offshore wind development at Utsira Nord. The proposed model involves a two-stage process: first, allocating project areas, followed by a maturation phase, and then distributing state aid. This approach aims to advance the growth of floating offshore wind technology in the region.

The plan includes assigning three project areas through a competition based on clear, fair, and qualitative criteria. The Ministry intends to launch this competition promptly after receiving ESA’s approval. Minister of Energy Terje Aasland emphasized the significance of this step, stating: “The proposed support model will take the development of floating offshore wind and Utsira Nord a major step forward, and I look forward to announcing the competition as soon as possible after ESA has approved the model.” He added: “The Government’s offshore wind investment will continue on a steady course.”

Following a maturation period of about two years, companies awarded project areas can compete in an auction for state aid. The auction is designed to support one project with a capacity of 500 MW, awarding aid to the operator requesting the smallest amount to complete their project. The Storting has capped the state aid at NOK 35 billion (€2.9 billion), to be provided as investment support. This marks the first instance of such a model being evaluated under state aid rules.

The Ministry developed this framework through consultations with the offshore wind industry and ESA, ensuring alignment with practical needs and regulatory standards. ESA will now review the notification formally. The model reflects Norway’s commitment to fostering sustainable energy solutions while maintaining a structured and competitive process for offshore wind development at Utsira Nord.