The Norwegian Government announces the competition for Floating Offshore Wind Projects for Utsira Nord

Nyhet
19 mai 2025

The long-awaited competition for the three project areas for floating offshore wind within the Utsira Nord zone has today, 19 May 2025, been announced by the Norwegian Ministry of Energy. This marks a significant and important step in the Norwegian Government's offshore wind strategy, and aims to stimulate renewable energy production, technology innovation, and growth opportunities for the supplier industry. More information and official documents can be found on the Norwegian Government's website.

Each project area can support up to 500 MW of installed floating offshore wind capacity. Interested parties / JVs are now invited to submit their applications, and at latest within 12:00 CET on 15 September 2025.

Key details of the tender

Number of project areas:3
Location:Utsira Nord, off the coast of Rogaland, Norway (see map below). The three project areas within Utsira Nord are also set out in a separate map below, cf. section 2a in the Offshore Energy Act Regulation (source maps: The Nw. Government)
Technology:Floating offshore wind
Maximum installed capacity per area:500 MW
Application deadline:15 September 2025

Two-step award process

Awarding under the Utsira Nord area and state aid will be carried out through the following two-step process:

Stage 1 – Project area allocationStage 2 - State Aid Competition
Award of project areas to the three applicants with highest score based on qualitative, objective and non-discriminatory criteria:Auction for state aid (after a project maturation period), awarded to the bidder requesting the lowest state support:
  • Cost level, realism and project maturity
  • Only applicants who have submitted a license (concession) application and bank guarantee may participate
  • Innovation and technology development
  • Auction will only be held if at least two applicants/bidders qualify
  • Execution capabilities/implementation capacity
  • State aid capped at NOK 35 billion (cap determined by the Parliament (Nw.: Stortinget))
  • Sustainability  
  • One winner: the bidder requiring the lowest level of support/state aid to realize a ~500 MW project, and the project, incl. MW effect of the chosen turbines in the project, must prove a project being as close to the ~500 MW as possible. The winning bidder will receive state aid by way of investment aid (Nw. Investeringsstøtte)
  • Positive ripple effects for industry and local communities
  • Non-winning bidders (not receiving state aid) may apply to extend their exclusive rights to the allocated area, cf. section 11 of the Offshore Energy Act

Legislative and Regulatory Updates

The competition steps for Utsira Nord will be completed in accordance with section 2-3 of the Offshore Energy Act cf. chapter 2A of the Offshore Energy Act Regulation. 

The Norwegian Water Resources and Energy Directorate (NVE) has been commissioned to carry out strategic environmental impact assessments of identified offshore wind areas. These are due to be completed by end of June 2025.

The assessments will comprise co-existence with other industries, environmental impacts, and provide key input for future tender rounds.

Future plans

The Government intends to conduct regular tenders for new offshore wind areas and support schemes, as outlined in the Ministry of Energy's budget proposal (cf. Prop. S (2024-2025)).

The level and availability of state aid will be determined in connection with each new tender and decided by the Parliament.

Local benefits

The Government has stated that the development of Utsira Nord should deliver tangible benefits to the local Utsira community. A specific solution for this will be proposed as part of the 2026 state budget.

Commentary: 

This tender marks a landmark moment in Norway's efforts to scale up commercial floating wind. The combination of competitive bidding, a tailored support mechanism, and strong governmental backing indicates a serious commitment to developing and building a leading offshore wind industry in Norway. Please contact our highly competent offshore wind team if you would like assistance with regulatory analysis, concession applications, or structuring your participation in the Utsira Nord tender process.