Norway is planning to make more offshore areas available for wind power development after putting out several offshore wind proposals for public consultation.
Norway is planning to make more offshore areas available for wind power development after putting out several offshore wind proposals for public consultation.
Minister of Petroleum and Energy, Tina Bru, said the government will identify new areas for offshore wind production and conduct an impact assessment of these areas. The process is expected to take two years.
Bidders will be able to apply for concessions for offshore wind projects within the opened areas Utsira Nord and Sørlige Nordsjø II.
The government is proposing to award at least three areas for up to 500 MW each at Utsira Nord.
The industry has advocated for hybrid solutions in Sørlige Nordsjø II, combining offshore wind farms and interconnectors, enabling import and export of electricity. As soon as the assessment of hybrid projects has been completed, the government will announce an auction for two or three project areas in Sørlige Nordsjø II in the second quarter of 2022.
In cases where there are several users of the offshore grid, the government will appoint Statnett as system coordinator at sea.
Bru added that the industry had shown so much interest in Sørlige Nordsjø II that she expected projects to be developed on a commercial basis – with no state aid.
Norway is also proposing to award at least three areas for up to 500 megawatts each, at Utsira North with the process starting by the end of the year.
‘Because the challenges are different, the process for granting licences will be different at Utsira Nord, said Bru. ‘Considering the current cost of floating wind, any large-scale project at Utsira Nord will require state aid. With this in mind, we do not think auctions are the right approach for this area.
‘We believe the best way forward is to develop projects through the licensing process. When projects have matured sufficiently, we will assess the timing and level of support for floating wind projects.’
‘If the assessments show that a grant will contribute sufficiently to technology development of floating offshore wind, that the projects are sufficiently mature and that the project is expected to be profitable for society, the government will consider increasing support in the state budget process.’
Norway will establish an offshore wind collaboration forum to reduce potential conflicts. The forum will include industry leaders, public authorities, the research community, industrial clusters, users of the ocean space and additional relevant stakeholders. It will address important issues such as co-existence, supply chain development and export opportunities. The first stakeholders meeting will be in early September.
‘We will also assess and possibly propose necessary legislative changes and more detailed rules for efficient access to, and use of the offshore grid,’ said Bru. ‘We need to facilitate a more interconnected offshore grid, with the possibility of new connections and future expansions of the grid.’
