Norway’s Ministry of Energy has sent a notification of the support model for floating offshore wind in Utsira Nord to the EFTA Surveillance Authority (ESA).
In the notification, the Ministry bases its decision on a model where the allocation of project areas and state aid takes place in two stages with a maturation phase in between.
Three project areas will be allocated in a competition based on objective and non-discriminatory, qualitative criteria.
The competition for the allocation of project areas will be announced as soon as possible after ESA has approved the model.
Minister of Energy Terje Aasland (pictured) said: “The proposed support model will take the development of floating offshore wind and Utsira Nord a major step forward, and I look forward to announcing the competition as soon as possible after ESA has approved the model.
“The Government’s offshore wind investment will continue on a steady course.”
After a maturation period of approximately two years, the actors that have been allocated project areas will have the opportunity to participate in an auction for state aid, the Ministry said.
The auction will be set up so that one project can obtain support for a project with a capacity of 500MW.
The winner of the auction is the operator that needs the least state aid to realise its project.
The Storting has set the upper financial framework for state aid at NOK35bn (€2.9bn). The aid will be provided as investment aid.
This is the first time that such a model has been processed under state aid regulations.
The development of the model has taken place in dialogue with the offshore wind industry and ESA. ESA will now formally process the notification.