The support model for floating offshore wind in the Utsira Nord area has been approved by Norway’s EFTA Surveillance Authority (ESA).
The country’s Ministry of Energy is using a model where the allocation of project areas and state aid takes place in two steps with a maturation phase in between.
Three project areas will be allocated in a competition based on objective and non-discriminatory, qualitative criteria.
After a maturation period of approximately two years, the developers that have been allocated project areas will be given the opportunity to participate in an auction for state aid.
The auction will be set up so that one developer can receive support for a project with a capacity of 500MW.
The winner of the auction is the operator that needs the least state aid to realize its project.
The Storting has set the upper financial framework for state aid at NOK35bn (€2.9bn). The support will be provided as investment support.
This is the first time such a model has been treated under state aid regulations, the Ministry said.
Minister of Energy Terje Aasland (pictured) added: “I am pleased that ESA has today approved the support model for floating offshore wind in Utsira Nord.
“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.
“I would like to thank ESA for the good dialogue over time. The work on the model has entailed groundbreaking work and has required significant resources from both the ministry and ESA.”