Norway Launches Floating Wind Tender for 1.5GW Utsira Nord Projects

Norway has officially launched its long-anticipated tender for three floating offshore wind project areas in the Utsira Nord region, each with a potential capacity of up to 500 MW. This two-stage process first awards project areas based on criteria such as cost, feasibility, and sustainability, followed by a maturation phase and an auction for state aid capped at 35 billion Norwegian crowns ($3.36-$3.37 billion). Despite challenges like inflation, supply chain issues, and higher interest rates that have caused delays and developer withdrawals, the Norwegian government aims to boost floating offshore wind development, highlighting the technology's suitability for deep-water sites. Energy Minister Terje Aasland emphasized the tender as a significant step toward commercial floating wind on Norway's continental shelf and stressed that the subsidy model is tailored to support technology advancement and cost reductions. Norway’s compliance with EU internal market rules, overseen by the EFTA Surveillance Authority, ensures the tender’s legality, while the country plans to focus exclusively on floating wind farms in future tenders. Industry leaders view this move as a pivotal moment for Norway’s ambitions to become a global leader in floating offshore wind technology.