Norway to launch first round of offshore wind tenders in early 2023

In a 6 December 2022 press conference, Norway’s Energy Minister Terje Aasland presented proposals for prequalification criteria, qualitative criteria for use in one of two areas already designated for offshore wind and provided details of the auction model to be used.

“Today, Norway’s offshore wind adventure begins in earnest,” said the Minister. “We will allocate areas corresponding to 30 GW by 2040.”

The Minister said collaboration will be the key to success and said he was launching a consultation process for both areas in advance of the tenders. The first consultation addresses the prequalification criteria and auction model for Sørlige Nordsjø II. The second addresses qualitative criteria to be used and the support scheme for Utsira Nord. The deadline to submit responses to the consultation process is 6 January 2023.

The Minister said the Norwegian Government wants the country’s investment in offshore wind “to provide industrial development in Norway, facilitate innovation and technology development and provide increased production of renewable power.

“To achieve these goals, we must have a close dialogue with the offshore wind industry and other users of the sea,” he said.

Mr Aasland said a ceiling will be set for the number of applicants who can prequalify to participate in the tender process. In the consultation, the government is asking for input on how the ceiling should be set. Applicants who are prequalified will then have the opportunity to participate in auctions.

The Energy Minister said, if the development of any of the windfarms in the areas requires state aid, the ministry propose this be provided via a contract for difference of the type used widely elsewhere.

Mr Aasland said, among other things, the qualitative criteria used in Utsira Nord will facilitate innovation and technology development in floating offshore wind. Capacity of up to 1.5 GW is being made available in the area, and the government will divide this area into three smaller areas, each suitable for the development of 500 MW of offshore wind capacity.