Norway goes big with its first offshore wind tenders

Norway Embarks on Large-Scale Offshore Wind Tenders

Norway has initiated its first tenders to erect two vast offshore wind farms, one of which could become the world’s first grandiose floating project.

Despite being a prominent producer and exporter of oil and gas, Norway also leads the world in electric vehicle adoption, and almost all of its electricity is produced from renewable sources, primarily from hydroelectricity. Consequently, to meet the growing demand for electricity, Norway has decided to undertake a significant offshore wind endeavor.

Norwegian Offshore Wind, the country’s biggest wind organization, believes that the market’s early entrants remain global leaders, and that the competition is not for the sake of competing.

If the process is expedited, floating turbines could be deployed before 2030, giving Norway an advantage over Scotland, which allocated areas in early 2022. Two regions have been put up for auction: Utsira Nord, which will be transformed into an offshore floating wind farm, and an area of 1,000 sq km (386 sq mi) northwest of Stavanger, which is open for bidding for licenses totaling at least 1.5 GW, with permits divided into three applicant groups of 0.5 GW each, and possibly expanded to 0.75 GW. Norwegian Offshore Wind believes that this could be the world’s first extensive floating offshore wind farm.

Southern North Sea II (Sørlige Nordsjø II) will feature bottom-fixed wind turbines, with its first phase spanning 605 sq km (235 sq mi). The Norwegian government is offering a contract for up to 1.5 GW of capacity to a single applicant. This wind farm is expected to generate enough electricity to power 460,000 homes.

The application deadline for both Norwegian and international wind firms is set for August and September this year, with substantial interest anticipated.

Norway is making a significant investment in offshore wind, with a target of achieving up to 30 GW of offshore wind capacity by 2040, equivalent to about 75% of its current power-generating capacity.