Norway has officially launched the first stage of its inaugural tender for floating offshore wind projects, the government said on Monday, as it seeks to advance renewable energy development despite ongoing industry-wide cost pressures.
The announcement marks the start of the long-anticipated Utsira Nord project, which will allow selected developers to mature projects of up to 500 megawatts (MW) over two years. A subsequent subsidy auction is scheduled for 2028–2029, with the government offering direct grants to support the build-out.
“Utsira Nord is an important first step in the development of commercial floating offshore wind development on the Norwegian continental shelf,” said Energy Minister Terje Aasland in a statement.
The Norwegian government has capped total subsidies for the Utsira Nord site at 35 billion Norwegian crowns ($3.37 billion), acknowledging the high costs and relative immaturity of floating wind technology.
Floating wind turbines, which are suited to deeper waters where traditional seabed anchoring is not feasible, are seen as a key solution for expanding offshore wind capacity in challenging maritime environments.
“The model for allocating project areas and state support is adapted to floating offshore wind and will contribute to both technology development and cost reductions for subsequent projects,” Aasland added.
Norway’s launch comes as the global offshore wind sector continues to face headwinds from rising interest rates, supply chain disruptions, and escalating costs — conditions that have led several governments to postpone or cancel wind tenders due to limited investor appetite.
Though not a member of the European Union, Norway participates in the EU internal market and must comply with state aid regulations overseen by the EFTA Surveillance Authority (ESA), which approved the Utsira Nord tender plan in April.
While Norway awarded its first bottom-fixed offshore wind licence earlier this year, future tenders will focus exclusively on floating wind, the government said.
