The EFTA Surveillance Authority (ESA) has approved Norway’s proposed support model for floating offshore wind development in the Utsira Nord area, the Ministry of Energy confirmed on Tuesday.
The model, being applied for the first time under European state aid rules, divides the allocation and funding process into two distinct phases. Initially, three project areas will be allocated through a competitive process based on objective and non-discriminatory qualitative criteria.
Following this initial selection, developers will enter a maturation phase lasting around two years. Upon completion, those developers will be eligible to participate in an auction to secure investment support for projects of up to 500 megawatts (MW) each. The auction will award support to the bidder requiring the lowest level of state aid to realise their project.
“The support model that has now been approved will contribute significantly to the development of floating offshore wind and I look forward to announcing the competition as soon as possible,” said Norway’s Minister of Energy, Terje Aasland. “The work on the model has entailed groundbreaking work and has required significant resources from both the ministry and ESA.”
The Norwegian parliament (Storting) has set the maximum financial framework for the aid at NOK 35 billion (€2.9 billion), which will be distributed as investment support.
According to the Ministry, the staged approach is designed to support both early-phase development and cost-efficient implementation, while ensuring transparency and fair competition.
“I am pleased that ESA has today approved the support model for floating offshore wind in Utsira Nord,” Aasland added. “I would like to thank ESA for the good dialogue over time.”
Utsira Nord is among Norway’s key offshore wind zones, specifically designated for floating wind due to its deep waters and favourable wind conditions.
