Europe's offshore wind sector is facing
strong headwinds as rising costs linked
to supply chain issues and interest rates
This was very evident earlier this month
when Denmark had to cancel its largest ever tender
for unsubsidised capacity because
it didn't receive a single bid.
But Denmark's recent failure hasn't deterred Norway
which plans to launch its first ever tender
for floating offshore wind early next year.
Encouraged by the successful auction of its large-scale
offshore wind project, Sørlige Nordsjø II, in March,
Norway plans to offer up to 1.5 GW of floating capacity
as soon as possible in 2025.
for the offshore wind industry.
We succeeded with the tender
for the Sørlige Nordsjø II project
where project development has already started.
Now we want to do the same with floating wind
which is an area that I believe
is very important for Norway because it adds
more value than only producing electricity,
it also creates a market for Norway's supplier industry.
Although floating offshore wind is regarded as
the next big thing in renewables development,
some companies have already stated publicly
that they will not participate,
arguing that EUR 3bn of budgeted state support
is too low to bridge the gap between expected
wholesale power prices and uncertainties
over this new technology's costs.
Of course, a little bit worried.
We have a situation now where several
companies and consortiums have withdrawn
from the Utsira competition.
However, there are several left.
There are eight or nine consortiums left
which are with a known interest for Utsira Nord.
So, in that respect I still think
there will be, there can be an auction
that is quite attractive.
Most would agree that the success
of the Utsira Nord auction hangs in the balance
but if one considers that the UK government
provided significantly more than EUR 3bn
in support to a recent offshore floating tender,
then the decisive factor could well be how much
the politicians, sitting in the Norwegian Parliament
behind me here, are willing to increase
financial support for this pioneering project.
have made investors reluctant to invest in new projects.
in an area called Utsira Nord, where the sea
is too deep for conventional bottom-fixed turbines.
I hope we can launch the auction
We want to create visibility
