Tendering For Offshore Wind In Norway Launched

• Published date: 04 September 2023
• Subject Matter: Corporate/Commercial Law, Antitrust/Competition Law, Energy and Natural Resources, Contracts and Commercial Law, Antitrust, EU Competition , Energy Law, Renewables
• Law Firm: Wiersholm
• Author: Sondre Dyrland, Inge Ekker Bartnes, Jon Rabben and Andreas Russwurm

On Wednesday 29th of March, the Norwegian Ministry of Petroleum and Energy announced the tender for allocation of project areas at S'rlige Nordsj' II and Utsira Nord.

The tendering for offshore wind projects on the Norwegian continental shelf is finally underway. The tender documents set out the terms and conditions for the tenders, and describe the process leading up to the award of project areas, the tender parameters and the documentation to be submitted by the participants. While the start-up for offshore wind development in Norway has been announced several times, the Government's announcement indicates that the race is now definitely underway.

There are several similarities between the tender documents for S'rlige Nordsj' II and Utsira Nord, but also a number of significant differences as to type of tender and how applicants are assessed. The differences may to a large extent be traced back to the difference in maturity of the projects, and the expected level of costs between bottom-fixed and floating offshore wind.

The tender documents are based on the proposals submitted for consultation by the Government in December 2022. However, the final tender documents contain substantial clarifications and elaborations in relation to the consultation documents, especially for the process leading up to the allocation. It is also clear that the Government has listened to the views of the industry and the public consultation feedback in several areas. One example is the requirements for reference projects, where the requirement for experience from development of HVDC grid facilities has been adjusted for S'rlige Nordsj' II.

For both S'rlige Nordsj' II and Utsira Nord, the Government prepares for a period where the applicants can ask questions related to the tender documents. This period is indicated to be 17 April - 1 June 2023.

The Government also announced at the press conference that a new tendering process for offshore wind areas will be launched in 2025.

S'rlige Nordsj' II

Summary

Project areas: One project area with a minimum of 1 400 MW and a maximum of 1 500 MW installed capacity, but with a maximum access to feed-in of 1 400 MW in the onshore grid.

Type of tender: Prequalification with selection of the 6 - 8 best applicants. Subsequent monetary auction between prequalified applicants.

Form of support: Two-sided contract for difference. Contract price to be determined by the auction. The contract for difference will be published later.

Grid connection: Radial connection, with the connection point either to Kvinesdal (primary alternative) or to Nye Mosby station...