Norway Unveils Groundbreaking Floating Wind Initiative Backed by $3.3 Billion in Support

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Norway has kicked off its much-anticipated floating offshore wind tender for the Utsira Nord region. Announced on May 19, 2025, this initiative comes after several delays and features a financial support package capped at 35 billion Norwegian crowns (around $3.37 billion).

The tender will allocate three project zones, each capable of generating up to 500 megawatts (MW), through a two-step selection process.

In the first step, applicants will be evaluated based on qualitative factors like cost-effectiveness, innovation, sustainability practices, and overall project viability. Only those who score highest in these areas will secure their respective project zones.

Once the initial awards are made, developers have a two-year window to refine their projects. In the second step of the process,those who have submitted necessary license applications and bank guarantees can enter a state aid auction.

The bidder that requires the least amount of state aid per megawatt to finalize their project will win. This subsidy is set to be disbursed as a direct grant between 2028 and 2029.

according to Norway’s Ministry of Energy, this award model is tailored specifically for floating wind initiatives and aims to enhance both cost efficiency and technological advancement. Officials are optimistic that this strategy could lower expenses for future offshore wind ventures.

originally slated for launch in 2023, this tender faced multiple postponements due to industry hurdles such as inflation spikes, supply chain issues, and rising interest rates—factors that led some developers to back out early on.

Nevertheless, Norwegian Energy Minister Terje aasland expressed enthusiasm about moving forward with the launch.He views it as an essential stride toward fulfilling Norway’s offshore wind goals while also addressing regional energy needs and creating new opportunities within the local supplier market.

Earlier this year, the EFTA Surveillance authority (ESA) approved this aid scheme under EU state aid regulations applicable to non-EU countries like Norway.

Situated off Rogaland County in the North Sea, Utsira Nord is deemed perfect for floating wind farms due to its deep waters where conventional fixed foundations aren’t practical.

Industry leaders have also reacted positively; Arvid Ness from Norwegian Offshore Wind hailed it as a meaningful milestone for growth in this sector. he believes Norway has immense potential to emerge as a frontrunner in floating offshore wind technology globally.

Interested parties must submit their applications by September 15th of next year; project area awards are anticipated by mid-2026. However, it’s worth noting that if fewer than two qualified bidders meet entry criteria during auction timeframes—set only after initial evaluations—the auction may not proceed at all.While Norway issued its first bottom-fixed offshore wind license back in 2024—a move towards diversifying energy sources—future tenders will now exclusively focus on advancing floating technology solutions.