- Norway launched its first floating wind tender at Utsira Nord, offering 500MW and capping subsidies at $3.37 billion.
- Developers have two years to prepare before competing for grants in a 2028–2029 auction.
Norway has officially launched the first phase of its long-anticipated floating offshore wind tender, offering developers access to state subsidies despite widespread industry headwinds. The government announced the move on Monday, May 19, positioning it as a critical step toward commercialising floating wind technology.
The tender will grant developers rights to build up to 500 megawatts (MW) projects at the Utsira Nord site, located off Norway’s south-west coast. Successful bidders will then have two years to develop their plans before competing for direct grants through a subsidy auction scheduled for 2028–2029.
“Utsira Nord is an important first step in the development of commercial floating offshore wind on the Norwegian continental shelf,” said Energy Minister Terje Aasland. He confirmed that Norway will cap total subsidies at 35 billion Norwegian crowns (US$3.37 billion), reflecting the sector’s potential and early-stage status.
The launch comes as the global offshore wind industry grapples with soaring costs, rising interest rates, and persistent supply chain disruptions. These challenges have led some governments to delay or cancel tenders due to a lack of bidder interest.
Norway has tailored its model specifically for floating wind, which is better suited for deeper waters where seabed-fixed foundations are unfeasible. Aasland said the allocation and support framework “will contribute to both technology development and cost reductions for subsequent projects.”
Although not a member of the European Union, Norway adheres to the bloc’s internal market regulations, including rules on state aid. The EFTA Surveillance Authority (ESA) approved Norway’s subsidy model for Utsira Nord in April, clearing the way for the tender to proceed.
Floating wind will dominate Norway’s offshore wind strategy going forward. While the country awarded its first bottom-fixed offshore wind licence in 2024, it will focus exclusively on floating technology in future tenders.