Norway finally launches Utsira Nord floating wind tender

A tender was initiated on 19 May 2025 for three areas in the Utsira Nord wind energy area designated by the Norwegian government. The application deadline for the tender is 15 September 2025 and an award is expected in H1 2026.

The launch of the tender has been delayed a number of times and was originally planned for 2023. As a result, a number of developers who expressed an interest in it when it was first announced have withdrawn, as the offshore wind industry is buffeted by the combined effects of inflation, higher interest rates and supply chain problems. Concern about the likely level of financial support also dissuaded some developers.

Norway Energy Minister Terje Aasland said the launch of the tender “is an important step forward for the government’s offshore wind investment.” He said in addition to providing power to a part of the country with a large power demand, the announcement “marks great opportunities for new contracts for the supplier industry,” he said.

The tender has been launched shortly after the EFTA Surveillance Authority (ESA) approved a state aid scheme for floating offshore wind on the Norwegian continental shelf, a scheme intended to support the development of a floating offshore windfarm in the Utsira Nord area, in the North Sea, off the coast of Rogaland County.

As previously highlighted by OWJ, 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 of Energy will hold 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.

In the first stage, three project areas will be allocated to developers securing the highest scores in a competition that the Ministry said will be based on “objective and non-discriminatory criteria” including cost level, realism and maturity; innovation and technology development; feasibility; sustainability; and ‘positive ripple effects.” Each project area will have an installed capacity of up to 500 MW.

The Minister continued, “I look forward to receiving good applications from the offshore wind industry. Utsira Nord is an important first step in the development of commercial floating offshore wind on the Norwegian continental shelf. 

“The model for allocating project areas and government support… will be able to contribute to both technology development and cost reduction for subsequent projects. The model has been developed in close dialogue with the offshore wind industry.”

The competition for state aid will be conducted after a maturation phase. To participate in the competition for state aid, developers must have submitted a licence application and provided a bank guarantee. The auction will only be conducted if at least two operators meet the requirements. One participant will be awarded state aid, and the winner will be the one seeking the lowest level of support realise a project. 

Norwegian Offshore Wind chief executive Arvid Ness said the long-awaited launch of the tender “is a joyful moment for the industry.” He said Norway has the prerequisites to become a global leader in floating offshore wind and a strong supply chain.