The government of Norway has announced that it has received two bids for offshore sites in the Norwegian area designated for floating wind projects, Utsira Nord. The bids come from Harald Hårfagre, a joint venture between Deep Wind Offshore and EDF Renewables, and a consortium of Equinor and Vårgrønn. The nation’s Ministry of Energy now has the job of assessing the applicants and choosing which may receive the rights to begin operations in the Utsira Nord region. Those applicants need to meet several key requirements that aim to increase wind power production in the Viking nation.
Norway is aiming to become a key player in the renewable energy sector with these two new sites
Norway is not known for its energy production, but the government has revised its plans to offer two sites that aim to change all that. Unlike the United States, there are no financial obligations or fees associated with the allocation of land. Which is surprising, considering the eventual financial return for the companies and consortia applying for the right to operate on the sites.
Norway’s Ministry of Energy made the announcement of the competition in May of this year, and reports are that initially there were up to 13 companies that had plans to apply for the rights, but market downfall and lack of significant investments have brought that number down to two. The three sites in Utsira Nord have a project capacity of 500 MW each, which could be the stepping stone that Norway has needed to become a key stakeholder in the solar sector.
The allocation of the sites is processed in three key phases, the first being the allocation of project sites, dependent on the applicant’s ability to operate the sites efficiently. The second phase is seen as a maturation phase, with the final phase being the state aid phase, which is another hurdle for the applicants to hurl themselves over if they are to be awarded the sites.
The auction requires developers to meet several crucial requirements to be considered
The first phase is seen as the most crucial; once the applicants have moved past the first phase, they will be able to work on their applications to meet the stringent requirements for the second phase. The requirements needed for the first phase are as follows:
- Cost level and maturity – Applicants need to provide essential proof of maintaining cost levels and maturity to be considered.
- Innovation and technology development – The wind power sector requires the relevant stakeholders to develop innovative approaches that promote technology development in the sector.
- Feasibility and sustainability – There needs to be a level of feasibility in the ease of the project starting operations, as well as providing guarantees of sustainability.
- Licence application and bank guarantee – The Ministry has revealed that applicants need to have submitted a license application as well as have a bank guarantee in order to be considered.
For the wind power sector, innovation is the name of the game. If the applicants are able to prove that they can meet the requirements of the Ministry in order to be considered, we expect the project to get substantial support from the government.
Some in the Norwegian government have expressed concerns over the lack of applicants
While the auction is a promising sign for the Viking nation, some in the government have expressed their concerns about the lack of applicants for the sites. Mathilde Tybring-Gjedde, the party’s energy policy spokesperson, said: “It is disturbing that there are only two potential developers. The whole purpose of the investment in floating offshore wind at Utsira was to have competition between multiple players, develop new technology, and bring costs down. With so few applicants, we risk that this will not happen.” Wind farms have seen several accusations that they harm the planet and its wildlife.
