Equinor Axes Offshore Wind Plans in Spain and Portugal, Weighs Further Market Exits

August 29, 2024, by Adnan Memija

Norway’s Equinor has decided to discontinue its offshore wind projects in Spain and Portugal, following the company’s earlier decision to exit Vietnam. Equinor may also scale back operations in other countries as well in an effort to cut costs, an executive told Reuters.

The announcement follows closely on the heels of Equinor’s decision to leave the offshore wind market in Vietnam and close its office in Hanoi.

In September 2022, Equinor, together with Spain’s Naturgy, unveiled the 200 MW Floating Offshore Wind Canarias (FOWCA) project located in the maritime area of eastern Gran Canaria. The companies aimed to compete with the FOWCA project in Spain’s first offshore wind auction, which will take place in the Canary Islands.

Earlier that year, Equinor and Naturgy sealed an agreement to work together in the analysis of opportunities for the development of offshore wind power in Spain.

The Spanish Government has set a target of 3 GW of installed offshore wind by 2030.

Regarding Equinor’s involvement in Portugal, the company was among fifty others that expressed interest in developing offshore wind projects in the country.

Portugal launched the initial phase of the first offshore wind auction at the end of October 2023 by issuing the call for expressions of interest.

In January 2023, the country’s Ministry of Economy and Maritime Affairs, the Ministry of Infrastructure, and the Ministry of Environment and Climate Action released draft areas for offshore wind development as part of the government’s plan to award 10 GW of capacity by 2030.

The government proposed putting the areas out to tender in phases, with three areas totalling 3.5 GW to be offered in the first phase.

Speaking to Reuters, Equinor’s head of renewables, Paal Eitrheim, also noted that “It’s getting more and more expensive, and we think things are going to take more time in quite a few markets around the world“. He also mentioned that the company may consider exiting additional markets.