News / 08.06.2021

Key components for Norway’s offshore wind sector

Author(s) Aksel S. Tannum & Bård Sandstad

Just ahead of the much awaited white paper on long-term value creation from Norwegian energy resources and guidelines for the licensing process for offshore wind this Friday, the Minister of Petroleum and Energy, Tina Bru, presented tidbits on the coming licensing system and development of the offshore wind sector in Norway.

Wind turbines at sea

The key highlights:

  • There will be two distinctive licensing processes, auction-based for bottom-fixed installations and qualitative criteria-based for floating installations.
  • By the first quarter of 2022 the Ministry aims to start the auctioning process for bottom-fixed installations in Sørlige Nordsjø II.
  • Bottom-fixed will not be offered state aid, whilst floating wind may be eligible for such support.
  • Statnett will be appointed as the system operator under the Offshore Energy Act for offshore cables and grid.
  •  The government will initiate the process of identifying new areas for offshore wind production, and this is expected to take two years.
  • The government signaled the need for more interconnected offshore grid, with the possibility of new connections and future expansion of the grid.

We expect these points to be detailed this coming Friday, Haavind will be following the process closely. It however still remains unclear if and when the government will address crucial questions regarding the financial framework such as the tax regime and possible mortgage solutions.