Norway has initiated the first phase of its inaugural floating wind tender, offering subsidies to successful bidders despite the global offshore wind sector’s ongoing challenges.
The industry has been hit by soaring costs, rising interest rates, and supply chain disruptions, leading some governments to delay or cancel tenders due to limited bidder interest.
This initial phase grants developers rights to build commercial floating wind projects up to 500 megawatts (MW) at the Utsira Nord site, located off Norway’s south-west coast. Winners will have two years to advance their projects before competing in a subsidy auction scheduled for 2028-2029, with support provided as direct grants.
“Utsira Nord is an important first step in the development of commercial floating offshore wind on the Norwegian continental shelf,” said Energy Minister Terje Aasland.
Norway has set a subsidy cap for Utsira Nord at 35 billion Norwegian crowns (approximately $3.37 billion), reflecting the technology’s early stage.
“The allocation model is tailored to floating offshore wind and will support both technology advancement and cost reductions in future projects,” Aasland added.
Although Norway is not an EU member, it participates in the EU’s internal market and must comply with EU state aid rules. The European Free Trade Association (EFTA) Surveillance Authority approved Norway’s floating wind tender in April.
Floating wind turbines are particularly suited for deep waters where seabed foundations are not feasible. While Norway granted its first bottom-fixed offshore wind license in 2024, future tenders will focus exclusively on floating wind farms.
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