UPDATED: ESA approves Norwegian support scheme for small-scale floating windfarms

The scheme aims to speed up the development of affordable renewable electricity from floating offshore windfarms by supporting small-scale projects.

The goal of the Norwegian support scheme is to make large floating offshore windfarms more cost-effective in the future. The scheme is the first to be assessed by ESA under CISAF.

Approval of the support scheme for small-scale floating wind projects comes after ESA approved a state aid scheme for floating offshore wind on the Norwegian continental shelf in April 2025. That scheme is intended to support the development of a floating offshore windfarm in the Utsira Nord area designated by the Norwegian government, in the North Sea.

The newly approved aid scheme for smaller-scale projects will be administered by Enova, a state-owned enterprise under the Ministry of Climate and Environment. It will have a total budget of up to Nkr10Bn (US$1Bn), with funding to be distributed through several competitive bidding rounds. 

The scheme will be in force until 31 December 2030. It replaces an ongoing programme approved by ESA in 2023 under the then-applicable Temporary Crisis and Transition Framework, which is set to expire in December 2025.

Following its assessment of the notified scheme on the basis of CISAF, ESA has concluded that it is compatible with the EEA State aid rules and therefore has no objections to its implementation.

Responding to the approval of the support scheme, Norwegian Offshore Wind chief executive Arvid Nesse said Norway’s ambition is to be a front-runner in developing floating offshore wind. “It is important for the floating wind industry and for Norway as a front-runner that Enova will provide funding for demonstration projects,” he told OWJ.

“Enova granted NKr2Bn to the GoliatVIND project and Nkr1.2Bn to Wind Catching Systems. We are very pleased about the new ESA approval and it is expected that a new competition will be announced shortly.

“Such projects are very important for the floating wind industry, helping it to learn and reduce costs before the large scale windfarms are built. Such projects will also activate the supply chain and help it prepare for larger projects.”