Norway Sets a Cap of 35 Billion NOK for Floating Wind

Norway allocates 35 billion NOK to support the development of floating wind, targeting a capacity of 2.25 GW by 2025. This strategic initiative strengthens the country's offshore energy transition.

Share:

Norway has announced an ambitious plan to support the development of floating wind by setting a subsidy cap of 35 billion Norwegian kroner (NOK), approximately 3.3 billion US dollars (USD). This measure marks a significant step in promoting offshore renewable energy and aims to position Norway as a global leader in this emerging field.

The first commercial call for tenders for floating wind is scheduled for 2025 and will focus on the Utsira Nord area. This ambitious project envisions a total capacity of 2.25 gigawatts (GW), spread across three distinct sites. Floating wind technology, although promising, remains in the development phase due to high costs and the complexity of the necessary infrastructure.

Challenges and Government Interventions

Developing floating wind requires substantial intervention from the Norwegian government due to the significant investments needed. Production costs are particularly high, as evidenced by previous projects. For example, a project recently awarded to the United Kingdom shows production costs of 2.7 NOK/kWh, nearly twice the Norwegian government’s estimates of 1.42 NOK/kWh. This disparity highlights the importance of subsidies in making projects economically viable.

Despite this financial support, many industry players remain skeptical about the government’s electricity price forecasts and production cost estimates. Companies must balance subsidies with the need for project maturity and return on investment requirements to ensure long-term viability. Currently, at least 13 consortiums have expressed interest in this project, including giants like Equinor and Ørsted, which are seeking to establish a strong presence in this strategic sector.

Strategic Objectives and Challenges

Norway’s primary objective is to create a floating wind ecosystem that can become a global standard. The country aims to capitalize on its geographical advantages and expertise in offshore energy, primarily developed in the oil and gas sectors. By investing in floating wind, Norway intends to diversify its energy mix and reduce its dependence on fossil fuels while contributing to the European Union’s (EU) climate goals.

However, several uncertainties remain regarding future costs and investor return expectations. These factors could slow the deployment of floating wind projects if cost forecasts are unrealistic or if investment returns do not meet developers’ expectations.

Impact on Decarbonization Strategy

This initiative is part of a broader strategy to decarbonize Norway’s energy sector. By relying on breakthrough technologies like floating wind, Norway aims to transform its energy sector sustainably. This transformation is essential to meet the EU’s climate commitments and maintain the country’s competitiveness in an increasingly complex European energy environment.

The development of floating wind will also create new economic and employment opportunities in the renewable energy sector. By investing now in this technology, Norway hopes to attract international investments and strengthen its position in the global green energy market.

German group wpd takes over the teams and a portfolio of 17 wind projects from Calycé, consolidating its position in the French market and expanding its regional presence, particularly in the Grand Est, with the support of Envinergy.
SPIE Wind Connect partners with Van Oord to connect and test 21 high-voltage cables for the Windanker offshore wind farm, marking a key milestone in the development of Germany’s offshore wind sector.
Envision Energy and FERA Australia announce an agreement to develop up to 1 GW of wind and 1.5 GWh of storage on the Australian market, laying the foundation for a new hybrid power plant model.
German group RWE has completed installation of all 100 monopile foundations at Sofia, a 1.4 GW offshore wind farm located 195 kilometres from the British coast, marking a major step in the construction of the project.
Greece’s wind sector reaches a new milestone with 5.5 GW installed, driven by 37 new turbines and €180 mn in investments during the first half of 2025, according to ELETAEN.
Nomura Real Estate has signed a power purchase agreement for its new Tokyo headquarters with wpd and GPSS Group, supplying the Higashi Izu Furusato wind project with a capacity of 7.48 MW.
Energiequelle completes the commissioning of two Enercon E-160 turbines in Raßlitz, replacing previous models and increasing the installed capacity of the Saxony site more than fivefold.
Ørsted has completed a $2.75bn project financing with 25 banks and five export credit agencies for the 632 MW Greater Changhua 2 offshore wind farm in Taiwan, strengthening its industrial partnership strategy. —
Masdar and Iberdrola announce a joint investment of €5.2 billion in the East Anglia THREE offshore wind farm in the United Kingdom and full commissioning of the German Baltic Eagle project (476 MW).
Energiekontor AG has secured contracts for four wind projects with a total capacity of 125 megawatts, following the Federal Network Agency's May 2025 tender in Germany.
Ecopetrol S.A. finalises the acquisition of Wind Autogeneración from Enel S.A.S., thereby taking over the Windpeshi wind project in Colombia, with a planned capacity of 205 MW, aimed at the Colombian oil group's energy self-consumption.
Oceanic Wind Energy Inc. and Coast Tsimshian Enterprises Ltd. secured an exclusive investigative use permit in the Hecate Strait, paving the way for Canada's first major offshore wind project, targeting capacity of up to 700 MW.
German manufacturer Nordex will supply 13 N163/6.X wind turbines to developer SAB WindTeam for a 91 MW wind farm in Brandenburg, with commissioning scheduled for early 2027 and an extended 20-year service agreement.
EDF is delaying the start-up of the Calvados offshore wind farm by more than two years, citing extended adjustments to a drilling tool vital for installing the sixty-four monopile foundations off Courseulles-sur-Mer.
German company NeXtWind signs historic €1.4 billion debt financing to accelerate expansion and modernisation of its onshore wind farms and reach a total capacity of 3 GW by 2028.
Energy company TGS has won a major high-resolution geophysical imaging contract for offshore wind site characterization in Norway, strengthening its position in this rapidly growing market.
Iberdrola Australia secures crucial approval from Australian authorities to begin metocean studies for its 3GW Aurora Green offshore project off the coast of Victoria, marking a decisive stage in its development.
ENGIE begins full operation of the Red Sea Wind Energy wind farm in Egypt, increasing its capacity to 650 MW, four months ahead of schedule, now powering over one million homes in the region.
Tokyo Gas, through TOWII Renewables, a joint venture with EWII, purchases two onshore wind projects developed by Finnish company Puhuri, totalling 74.4 MW, marking its expansion beyond the Danish market.
The European Investment Bank grants EWE AG historic €450mn financing for the installation of 2,600 km of underground power lines and the upgrade of over 1,100 substations in Lower Saxony.