The Norwegian Ministry of Energy launched, on May 19, a competition for three project areas for floating offshore wind in Utsira Nord, located off the west coast of Norway. Each project area has an installed capacity of up to 500 MW.

The competition for state aid will be conducted after a maturation phase later. To participate in the competition for state aid, the developer must have submitted a license application and provided a bank guarantee for participation in the auction. The auction will only be conducted if at least two developers meet the requirements.

One developer will be awarded state aid, and the winner will be the one who bids the lowest support requirement to realize their project. Bidding will not be permitted above the upper limit for state aid of NOK 35 billion. The winner of the support competition will establish a project as close to 500 MW as possible, depending on the chosen turbine size. Participants who do not win the support competition will be able to apply to have the exclusive right to the project area extended.

The launch of the round comes after several delays. The areas were originally planned to be put up for allocation by the end of 2023, but conflicts with EU regulations for competitive allocations have slowed down the process.

Several developers had originally expressed an interest in participating, but the slow progress of launching the sites and worsening market conditions has led to few developers remaining. There have also been doubts expressed about the subsidies on offer, and whether they, under the current market conditions, are sufficient. Since only one developer will receive support, there is also a significant risk linked to maturing the project ahead of the subsidy allocation. The lack of a guaranteed support scheme might lead developers to look at options in other markets instead.

The deadline for applications has been set for September 15, and the award of sites is expected in the first half of 2026.

Image credit: Ole Jørgen Bratland/Equinor