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Norway has officially launched its long-awaited floating offshore wind tender for the Utsira Nord area. The tender, announced on May 19, 2025, comes after repeated delays and includes a financial support scheme capped at 35 billion Norwegian crowns ($3.37 billion).
The tender will award three project areas, each with an installed capacity of up to 500 megawatts (MW), to developers through a two-stage process.
In the first phase, applicants will compete based on qualitative criteria such as cost realism, innovation, sustainability, and project feasibility. Only those securing the highest scores will be allocated project areas.
Following the initial awards, developers will have two years to mature their projects. In the second phase, those who have submitted license applications and bank guarantees can participate in a state aid auction.
The winner will be the bidder requiring the lowest state aid per megawatt to complete their project. The subsidy will be provided as a direct grant between 2028 and 2029.
Norway’s Ministry of Energy stated that the model for awarding project areas and support is specifically designed for floating wind and aims to promote both cost efficiency and technology development. Officials believe this approach could reduce the cost for future offshore wind projects.
Although originally planned for 2023, the tender was postponed several times. Industry challenges- including rising inflation, supply chain disruptions, and higher interest rates- prompted several developers to withdraw their early interest.
Despite this, Norwegian Energy Minister Terje Aasland was optimistic about the launch, describing it as a significant step in the government’s offshore wind ambitions. He stated that Utsira Nord could help meet regional power demands and generate new contracts for the country’s supplier industry.
The EFTA Surveillance Authority (ESA), which oversees compliance with EU state aid rules for non-EU members like Norway, approved the aid scheme earlier this year.
The Utsira Nord site, located off the coast of Rogaland County in the North Sea, is considered ideal for floating wind due to its deep waters where fixed foundations aren’t feasible.
Industry figures also welcomed the development. The head of Norwegian Offshore Wind, Arvid Ness, called the tender a positive milestone for the sector. He said the country has strong potential to become a global leader in floating offshore wind.
Applications for the tender must be submitted by September 15, 2025, and the award of project areas is expected in the first half of 2026. However, the state aid auction will only proceed if at least two qualified bidders meet the entry requirements.
Norway issued its first bottom-fixed offshore wind license in 2024, but future tenders will now focus only on floating wind technology.
Reference: Reuters
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