Norway Drops Fixed-Bottom Offshore Wind Plans, Shifts Focus to Floating Wind

February 11, 2025, by Adnan Memija

The Norwegian government has cancelled plans for another fixed-bottom offshore wind tender in the North Sea due to cost concerns, shifting its focus toward developing floating offshore wind projects.

On 10 February, the Ministry of Energy announced that it no longer plans to advertise the Sørvest F later this year, which is an extension of the 1.5 GW Sørlige Nordsjø II (Southern North Sea) area that was won by Ventyr Energi, a consortium of Parkwind and Ingka Investments, in a tender in 2024.

norway floating — *Source: The Norwegian Water Resources and Energy Directorate (NVE)*

The decision was made following a study by the transmission system operator (TSO) Statnett, which offered possible grid solutions for connecting new offshore wind from the Sørvest F area to the onshore grid.

According to Statnett, the TSO evaluated five grid concepts, one connecting to the Norwegian mainland and four hybrid concepts that also linked to neighbouring countries.

The study outlined that offshore wind production connected to hybrid grid solutions would require state support. The TSO also emphasized the need for further technological development before a larger, interconnected offshore grid in Europe (the North Sea grid) can be considered.

“We are currently facing high costs, both related to offshore wind production and associated grid solutions. It is clear from the study by Statnett that hybrid cables will not solve these challenges. Offshore wind production will depend on significant government support, regardless of which grid solution we propose,” said Terje Aasland, Minister of Energy.

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Business development

According to the Ministry of Energy, the government does not exclude the possibility that offshore wind with hybrid solutions could become viable in the future if the circumstances and cost factors change.

“We believe that it is not the time to proceed with planning hybrid cables now. The cost level is high, it is difficult to find profitability in the projects, the regulations at the European level are not in place and in a time of instability in the European power market, I am skeptical of further exposing the Norwegian power system to the power challenges we have seen in Germany and other countries on the continent. Instead, the government will prioritize floating offshore wind projects,” said Aasland.

The government said it will continue its offshore wind investment and is working to announce areas for floating offshore wind as soon as possible.

The Norwegian Water Resources and Energy Directorate (NVE) is planning to deliver the final part of a strategic impact assessment by summer, identifying areas that may be relevant for offshore wind. Most areas are only suitable for floating offshore wind, according to the Ministry.

Based on the assessment, the government will prepare a plan for the way forward for the development of offshore wind on the Norwegian continental shelf.