Today the Norwegian government presented further clarifications regarding the development of Norway’s offshore wind sector.
The government repeats their self-claimed ambitious goal for a large-scale offshore wind industry and highlights the importance of increasing the Norwegian power production. However, the new proposals are not likely to satisfy the industry’s expectations to speed up the process of producing offshore wind power on the Norwegian continental shelf.
The government repeats their self-claimed ambitious goal for a large-scale offshore wind industry and highlights the importance of increasing the Norwegian power production. However, the new proposals are not likely to satisfy the industry’s expectations to speed up the process of producing offshore wind power on the Norwegian continental shelf.
Key components from the press release are:
- The government maintains that the principal rule will be an auction-based system for awarding licenses for offshore wind production, thus the proposal is not accommodating the industry’s request for a licensing process based on qualitative criteria as the main rule. A white paper with proposed alterations to the offshore energy law and regulations regarding the auction process will be presented this spring.
- The Sørlige Nordsjø II area is divided into two phases; the main production goal of 3000 MW is for the first phase reduced to 1500 MW, however with an opening for an additional 1500 MW in an upcoming second phase. It is decided that the initial phase of 1500 MW is limited to a production radial to the Norwegian mainland, thus disregarding the industry’s request for a hybrid grid option. This complicates further developments on the Norwegian continental shelf.
- The second phase of Sørlige Nordsjø II is subject to additional studies, including an option for hybrid grid connections.
- The government has presented a white paper regarding further division of the Sørlige Nordsjø and Utsira areas that will be subject to a public hearing. The deadline for submitting input to the proposal is set to April 29, 2022.
- In addition, the government is considering the opening of new potential areas for offshore wind production on the Norwegian continental shelf.
- The government reaffirms the need for state aid in Utsira Nord, but does not provide any further clarifications regarding financial support schemes.
More information on the press release can be found here.