Brigg Vind, the offshore wind consortium of Vårgrønn, Å Energi and Corio Generation, will no longer be bidding in the planned Norwegian offshore wind auction in February.
The consortium said it had worked extensively on pre-qualification application, and completed a detailed economic analysis, for the first phase of Sørlige Nordsjø II.
However, it said that after careful consideration of the prevailing cost structure, market conditions, timeline, Contract for Difference (CfD) terms and other regulatory factors, it has “concluded that the commercial requirements to participate in the planned auction in February 2024 are not met”.
The consortium said that it interprets the commitments associated with the pre-qualification to imply that consortia applying for pre-qualification should have a clear intention to submit a bid in the upcoming auction in February.
“As Brigg Vind will not submit a bid under current market conditions and frameworks, we believe it would be wrong to participate in the pre-qualification process. Consequently, we are not submitting our pre-qualification application on 15 November”, it added in a statement.
The statement continued saying: “We are confident that Brigg Vind would have pre-qualified and delivered a strong offshore wind project.
“It has therefore been a difficult decision for the consortium not to advance in this first award process in Sørlige Nordsjø II.
“Brigg Vind believes strongly in the long-term potential of commercially viable offshore wind projects in Norway, where offshore wind is uniquely positioned to generate vast amounts of renewable power, reduce emissions, and create new jobs and industry.
“We remain committed to playing a part in realising Norway’s significant offshore wind potential.”
This decision will not impact other ongoing competitions in which Brigg Vind partners Vårgrønn, Å Energi and Corio Generation are engaged, the consortium added.
The move follows Orsted pulling out of a partnership bidding for development rights in upcoming Norwegian offshore wind auctions.
The Danish developer has exited the alliance with Fred Olsen Seawind and Hafslund, according to the Olsen parent Bonheur.