'Disappointing': Norway's subsidy for floating falls flat with offshore wind industry

Government will only provide support for one project, which industry body says will make fostering diverse supply chain difficult

Arvid Nesse of Norwegian Offshore Wind.
Arvid Nesse of Norwegian Offshore Wind.Photo: Arne Vatnøy/Norwegian Offshore Wind

Norway’s government will provide NKr35bn ($3.3bn) to support one 500MW floating offshore wind farm, a move branded “disappointing” by a local industry body.

Energy Minister Terje Aasland told Norwegian business title Dagens Næringsliv the government will propose setting a NKr35bn ceiling for the planned floating project.

This represents a responsible and balanced approach to offshore wind investment, he said.

Arvid Nesse, leader of industry body Norwegian Offshore Wind, said: “The supplier industry is, of course, disappointed, as we had expected two projects to receive support.

“It is important to ensure diversity in the supply chain, and this will now become more difficult,” says Nesse. "This is important for the suppliers to gain the predictability necessary to make the right investments for the future.”

Norway’s plans to be a trailblazer in floating wind have been repeatedly set back by wrangling over the government support that would be provided to the projects.

In March, the government again postponed the 1.5GW Utsira Nord auction round, saying there would be a joint notification for the area and others relevant for floating offshore wind next year.

“The positive aspect now is that we are actually moving forward, and that Utsira Nord will be realised, despite only having one project in the first round,” said Nesse.

“At the same time, many countries globally are developing floating offshore wind, and analysis show 200GW under development. It is extremely important for the development of Norwegian suppliers that we have a domestic market and that we are early adopters”.

Norwegian Offshore Wind has previously said 12 different consortia are interested in the Ultsira Nord round.

Norway also boasts one floating wind farm, the 88MW Hywind Tampen array that came online last year.
In March, developer Japanese-owned developer Parkwind and Ingka Investments, the investment arm of the owner of furniture giant Ikea, won Norway’s first large-scale offshore wind auction, which had put 1.5GW of fixed-bottom capacity on the table.
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Published 26 September 2024, 12:33Updated 26 September 2024, 12:34
NorwayNorwegian Offshore WindEuropeOffshore