Norway’s EFTA Surveillance Authority (ESA) has approved a support model for floating offshore wind development in the Utsira Nord area, advancing the country’s renewable energy initiatives. The Norwegian Ministry of Energy has designed a two-phase model that allocates project areas and distributes state aid, with a maturation phase in between to ensure project readiness.
The process begins with the allocation of three project areas through a competitive selection based on fair and transparent qualitative criteria. After a maturation period of approximately two years, developers assigned these areas can participate in an auction for state aid. The auction is structured to support one developer for a 500MW project, with the winner being the operator requiring the least financial assistance to complete their project. The Norwegian parliament has allocated up to NOK 35 billion (€2.9 billion) for this initiative, provided as investment support.
This model marks the first time such an approach has been evaluated under state aid regulations, according to the Ministry of Energy. The framework aims to promote innovation and efficiency in floating offshore wind projects while maintaining equitable competition. “I am pleased that ESA has today approved the support model for floating offshore wind in Utsira Nord,” said Minister of Energy Terje Aasland. “The support model that has now been approved will contribute significantly to the development of floating offshore wind, and I look forward to announcing the competition as soon as possible.”
The Ministry emphasized the collaborative process with ESA, which involved extensive dialogue and resource commitment. “I would like to thank ESA for the good dialogue over time. The work on the model has entailed groundbreaking work and has required significant resources from both the ministry and ESA,” Aasland added. This partnership has been crucial in establishing a robust framework that aligns with sustainable energy objectives.
The Utsira Nord project highlights Norway’s dedication to expanding renewable energy infrastructure. By leveraging floating offshore wind technology, the initiative seeks to enhance energy production while supporting environmental goals. The approved model provides a clear pathway for developers, fostering investment and technological progress in the sector. The Ministry is preparing to launch the competition for project area allocation, paving the way for advancements in Norway’s offshore wind industry.
