In January 2021, Norway is opening two areas for floating offshore wind development.
The presence of key drivers and potential build-out capacity can make Norway an attractive floating market:
- Deep-water site Utsira Nord is deemed most promising for floating projects
- Key drivers for build-out in Norway are floating wind’s potential to reduce CO2 emission from the upstream oil and gas industry, and to develop exportable industry expertise
- Clear policies and governmental support towards floating offshore wind are still missing, leading to uncertainty regarding build-out potential, which could range from 600 to 3,000+ MW by 2030
- A 500 MW project in Utsira Nord area is anticipated to be the first large-scale commercial floating project, possible from 2026 based on the existing permitting regime
- Norway’s mature maritime industry, the site proximity to North Sea offshore wind supply chain and good port infrastructure, create favorable conditions to support a Norwegian build-out
- Floating wind parks will most likely be connected the established main grid or to oil & gas platforms
LCoE development of floating wind projects in Norway
The Utsira Nord and Sørlige Nordsjø II sites, having attractive site conditions, are predicted to be constructed with levelized cost of energy in a range from 60 to 90 EUR/MWh. The Utsira Nord site will be slightly more competitive due to a lower transmission cost and lower OPEX driven by the differences in number of turbines and the distance to O&M port.
- Rystad Energy research estimated the first floating wind farm in Norway of 500MW in 2025 at ~115 EUR/MWh. This is ~25% higher than Aegir’s estimated for 500MW wind park Utsira Nord a year after
- Equinor has stated a floating wind cost target of approximately 40-60 EUR/MWh by 2030
- Aker Solutions stated in a company presentation from August 2020 their target to drive down cost to ~50 EUR/MWh by 2030
Aegir Insights’ Norway Floating Offshore Wind Report 2020 is one in a growing line of research reports and other research offerings. Reach out to us to learn more about gaining access to our research.