Changes to the Investment Support Agreement for Utsira Nord – Key Takeaways and Mechanisms
The Ministry of Energy recently published amendments to the investment support agreement for floating offshore wind at Utsira Nord. The revised support model retains a capped, one-off state grant covering necessary investment costs for up to 500 MW of installed capacity but introduces several clarifications and updates. Below are key points of the investment support agreement for Utsira Nord, following the August 2025 revision.
Silje Helene Bakkevig Dagsland
Partner
Bård Sandstad
Partner
Kari Wiig
Associate
Matias Tvermyr Holmen
Associate
- Up to 10% of the state aid may now be disbursed after the final investment decision subject to documented incurred costs, with the remainder to be paid upon project completion and approval of audited project accounts.
- The maximum aid per MW and for the overall project is subject to CPI adjustment up until completion.
- Where spot market prices for non-contracted power exceed a set “reference price”, 50% of any surplus revenues over 15 years from completion must be shared with the State, similar to a one-way CfD mechanism.
- Detailed reporting, auditing, and transparency obligations have been further strengthened, especially concerning documentation for investment support and revenue sharing
- Recipients must provide security in the form of a NOK 2 billion guarantee (minimum NOK 1 billion bank guarantee, remainder may be parent company guarantee), subject to strict rating and equity requirements.
- Eligible costs are limited to what is considered necessary and actually incurred; costs above this threshold will not be covered.
The final completion date for the investment support agreement is still unkown.