ESA approves support scheme for Norwegian floating wind plan

The aid scheme submitted to the ESA earlier this month aims to support the development of a floating offshore windfarm in the Utsira Nord area designated by the Norwegian government, which is in the North Sea, off the coast of Rogaland County.

The ESA said the windfarm will increase renewable energy production in Norway, support electrification, and cut fossil fuel dependency in transport, industry and business. It will therefore aid Norway in reaching its emissions-reduction targets and will contribute to European emissions reductions.

Norway participates in the EU’s internal energy market through the European Economic Area (EEA) agreement. It is also part of the Nordic power market and integrated into the wider European market through interconnectors.

The support scheme for the floating windfarm will be administered by the Norwegian Ministry of Energy and has a total budget of Nkr35.0Bn (US$3.3Bn). It will be granted in the form of a direct grant.

The award of project areas in Utsira Nord and granting of state aid will follow a two-stage model. In the first stage, the Ministry will announce a qualitative competition for the award of project areas.

Following this, in the second stage, the Ministry will conduct a state aid auction. The aid will be granted to the bidder willing to realise the project with the lowest amount of state aid per megawatt.

ESA approved the aid scheme under the Guidelines on State Aid for Climate, Environmental Protection and Energy, concluding it is in line with EEA rules on state aid. 

Responding to ESA’s decision, Norway Energy Minister Tarje Aasland said, “I am pleased ESA has approved the support model for floating offshore wind at Utsira Nord. 

“The support model that has been approved will contribute significantly to the development of floating offshore wind and I look forward to announcing the competition as soon as possible.”

The energy ministry plans to hold an auction to enable a developer to secure state aid for a project with a capacity of 500 MW.