The Norwegian government will adjust the proposed support agreement for the Utsira Nord floating offshore wind project, reducing the penalty for withdrawing before a final investment decision and bringing forward part of the state aid payments.
The changes follow external assessments of technology development, economic spillover effects and the state’s financial risk under the support scheme, presented as part of Norway’s 2027 state budget on 7 October.
The government said the adjustments reflect increased uncertainty around project progress due to the still-immature floating wind supply chain. They fall within the support framework notified to the EFTA Surveillance Authority (ESA) and do not change the state’s total financial commitment, which is capped at NOK 35 billion (around EUR 3.3 billion).
In 2025, the Norwegian parliament authorised the government to commit up to NOK 35 billion in 2025 prices to support floating offshore wind in the Vestavind B and Vestavind F project areas at Utsira Nord.
Under the support scheme, the state’s role is primarily to conduct the support competition and pay the awarded aid, while the winning company will build, own and operate the wind farm. The support will take the form of investment aid, with the main payment due once the facility is completed.
Utsira Nord was opened for applications in 2025. In February 2026, Harald Hårfagre, a joint venture between Deep Wind Offshore and EDF Renewables, and a consortium of Equinor and Vårgrønn, which were the only developers to submit applications in Norway’s first floating wind tender, were each awarded a project area.
They are now developing their proposals before applying for licences. If both submit licence applications, the winner of the support competition will be the developer requiring the lowest amount of aid per megawatt.
The support scheme is designed to enable a 500 MW floating offshore wind project at Utsira Nord, which is expected to generate approximately 2 TWh of electricity annually.
Scenario analyses by the Norwegian Water Resources and Energy Directorate (NVE) indicate that developing Utsira Nord would have the greatest impact on electricity prices in southwestern Norway (NO2) and western Norway (NO5). In southwestern Norway, average electricity prices in 2035 are projected to be around NOK 0.03 (EUR 0.0028) per kWh lower with Utsira Nord than without it.
The NVE analysis also estimates that average electricity prices across Norway in 2035 would be NOK 0.084 (EUR 0.0078) per kWh higher in a scenario where neither Utsira Nord nor the Sørlige Nordsjø II offshore wind project is developed.
Norwegian Energy Minister Terje Aasland said the external assessments support the importance of Utsira Nord for the country’s electricity balance, technology development and floating wind cost reductions.
The government said Utsira Nord could help move floating wind from the demonstration stage towards industrial-scale development and create opportunities for Norway’s supply chain, both domestically and internationally.