21 November 2024
Norway takes promising steps towards advancing floating wind
© Equinor
Norway has taken a big step towards commercial scale floating offshore wind. The Norwegian Government has confirmed the budget for the upcoming 500 MW ‘Utsira Nord’ auction. The move underscores Norway’s commitment to maintain and expand its globally leading position in floating offshore wind. But more needs to happen to secure investments in Norway’s nascent domestic floating wind supply chain.
The Norwegian Government has confirmed an approximately €3bn budget for the upcoming ‘Utsira Nord’ floating offshore wind auction. At 500 MW Utsira Nord would be the largest floating offshore wind farm in Europe to date. The successful bidder will be awarded a two-sided contract for difference.
The move underscores Norway’s commitment to maintain and expand its globally leading position in floating offshore wind. However, for some the budget came as a disappointment, as it will only provide funding to a single project in the Utsira Nord area. The Government had previously suggested they would support two floating wind projects.
“Norway has shown impressive commitment to developing floating wind with the pioneering Hywind Tampen. Utsira Nord is the next logical step. It will help drive down costs and make floating offshore wind even more competitive”, says Pierre Tardieu, Chief Policy Officer at WindEurope.
Can Norway solidify its leading floating wind supply chain?
The floating wind industry is now waiting for more visibility on Norway’s long-term auction volumes and schedule. Only with a long-term commitment Norway can build up a world-leading floating wind supply chain, economically benefitting municipalities and communities along its long coastline.
“The Norwegian Government must remain firmly committed to floating wind. The auction rounds in 2025-2029 will decide whether Norway will remain among the most promising offshore wind markets in Europe”, adds Pierre Tardieu.
Norway already boasts a strong offshore supply chain and deep-water ports, positioning it as a leader in the floating offshore wind sector. But the reduction of the Utsira Nord auction from two projects to one threatens further investments in infrastructure and manufacturing capacity. Norway must urgently provide more visibility on future auction rounds for 2025, 2027, and 2029.
Floating offshore wind holds significant economic growth potential for Norway – domestically and in terms of global export potential. Floating offshore wind is a pivotal technology in reducing CO2 emissions globally, as it unlocks the potential to harness strong wind resources in deeper waters.
