Norway's Ambitious Floating Wind Farm Initiative Launches

Norway has initiated its first floating wind tender, offering subsidies despite industry challenges like high costs and supply issues. Successful bidders will develop projects at Utsira Nord with a capacity of up to 500 MW. Norway will cap subsidies at 35 billion Norwegian crowns, aiming for technology development.

Norway has commenced its initial floating wind tender, signaling a significant move in the renewable energy sector despite global challenges such as rising costs and supply chain disruptions. On Monday, the government announced that winners would receive subsidies, aiming to attract interest from bidders.

The launch marks the first phase in the process where successful bidders will develop commercial projects at Utsira Nord, with the potential to reach up to 500 megawatts (MW) in capacity. Norway's Energy Minister, Terje Aasland, emphasized the importance of this initiative as a foundational step for floating offshore wind development.

With a cap of 35 billion Norwegian crowns ($3.37 billion) on total subsidies, Norway is setting a precedent for future projects. This strategy not only adheres to EU's internal market rules but also represents a commitment to advancing technology and reducing costs for subsequent initiatives, shifting focus exclusively to floating wind farm tenders in the future.

(With inputs from agencies.)