The Norwegian Government will propose a cap of NOK 35 billion on state aid for the first floating offshore wind project
The Norwegian Minister of Energy has on September 26 2024 stated that the Government intends to cap the state aid for the first Norwegian floating offshore wind project to NOK 35 billion.
The Norwegian Minister of Energy has on September 26 commented that the Government intends to cap the state support for the first Norwegian floating offshore wind project to NOK 35 billion. Such cap will be further clarified in the Government’s proposal for the state budget for 2025, which will be submitted on October 7. The cap will apply to a reference project of about 500 MW and will be subject to inflation correction.
In comparison, the latest UK offshore wind award had a support level corresponding to over NOK 65 billion for a similar project. According to the first comments from the offshore wind industry, the Government’s proposition could entail a reduction in the Norwegian offshore wind initiative, given that the support level will only be enough to ensure one project of 500 MW instead of two projects.
We note that the final state budget is not passed, and that changes to the cap on state aid may follow from negotiations between the governing parties and their collaborating party, SV. SV has stated that the proposition from the Government is in breach with the budget agreement with SV, and the state cap might therefore be altered in the final state budget.