The Norwegian government has decided to cancel plans to tender the Sørvest F offshore wind area, citing high grid costs as a key factor. The area, initially planned as an extension of the in-development Sørli 2 project, will not be put up for tender this year following a study by transmission system operator Statnett.
Minister of Energy Terje Aasland explained the decision, stating, “We are currently facing high costs, both for offshore wind production and associated grid solutions.” He added that Statnett's study indicated that hybrid cables would not resolve these challenges. “Offshore wind production will need a lot of government support, regardless of which grid solution we choose. Therefore, we will prioritise floating projects with radial,” Aasland said.
Aasland also expressed concerns about the timing of the project, citing high costs and difficulties in finding profitability. “The cost level is high, it is difficult to find profitability in the projects, regulations at the European level are not in place, and at a time of instability in the European power market, I am sceptical of further exposing the Norwegian power system to the power challenges we have seen in Germany and other countries on the continent,” he said.
Despite scrapping the Sørvest F project, the government reaffirmed its commitment to investing in offshore wind and announced plans to unveil areas for floating offshore wind development as soon as possible. The Sørvest F area, which covers 2,702 square kilometres, was initially intended for fixed-bottom technology.