Norway’s Ministry of Energy will assign Utsira Nord floating wind areas to the two groups that took part in the country’s first tender for floating projects, it announced on 11 December. One project area will go to the Harald Hårfagre joint venture of Deep Wind Offshore and EDF Renewables, while another will be awarded to a consortium made up of Equinor and Vårgrønn.
The tender for Utsira Nord was launched in May, and by September the Ministry had received two applications for the 500 MW zone.
The process is structured in two main steps. In the first, authorities decide which developers receive project areas. After a further development phase, a separate competition will be held to determine which project is granted state support.
For the initial allocation, developers are ranked on qualitative assessments rather than bid price. The Ministry considers aspects such as project cost and readiness, innovation and technology development, the ability to deliver, environmental performance, and broader economic effects.
According to the Ministry of Energy, both bidding teams satisfied the eligibility criteria and provided strong responses against these qualitative measures.
Energy Minister Terje Aasland said the decision allows the government to move ahead with awarding Utsira Nord areas to two robust applicants, and that the projects are expected to support further progress in floating offshore wind technology and increase renewable power generation in south-western Norway.
Once their respective areas have been allocated, the developers can submit proposals for impact assessment programmes tailored to each project, carry out the necessary studies and then apply for licences. Licence applications must be filed within two years of approval of the impact assessment programme. Holding a licence will give the companies the right to take part in the later competition for state aid, the Ministry said.
If both developers decide to seek support, only one project will receive funding. The winning bidder will be the one that can deliver its project with the lowest requirement for state aid. The support framework has been set at up to NOK 35 billion, equivalent to close to EUR 3 billion.
Under previously released tender requirements, the project that secures state support is to be built with an installed capacity close to 500 MW, depending on the turbine rating selected. The bidder that does not obtain support may apply to extend its exclusive rights to the project area in line with Norway’s Offshore Energy Act.
