Norwegian Government Advances $3.3 Billion Subsidy for Floating Wind Development
The Norwegian government confirmed today in its 2025 budget proposals that it will proceed with a $3.3 billion subsidy to support the development of floating offshore wind technology. The initiative aims to drive forward Norway’s plan to achieve 30 GW of offshore wind power by 2040, with floating technology expected to play a key role.
“Norway has enormous potential for floating offshore wind on its continental shelf, but the technology is still immature and costly,” said Minister of Energy Terje Aasland. “That is why we are proposing an ambitious support scheme to accelerate its development. This will provide more power for Norway and pave the way for a new industrial adventure.”
The government’s proposed support scheme will significantly boost the development of floating wind farms. The plan was initially agreed upon in June 2024, after several delays while the government debated its role in supporting the offshore wind sector. Although Norway had initially planned two wind auctions in March 2023, efforts were postponed, and the first auction for Sørølige Nordsjø II—a fixed-bottom site in the North Sea—finally took place in March 2024.
The fixed-bottom auction was highly competitive, with major players such as the Ingka Group (Ikea’s largest franchiser) and Parkwind—majority-owned by Japan’s Jera (a partnership between Tokyo Electric Power Company and Chubu Electric Company)—winning the bid. The project is slated for power generation by 2030.
Interest in Norway’s second site, Utsira Nord, remains strong despite delays, with 13 companies expressing interest. This site will focus on floating wind technology.
The Norwegian Water Resources and Energy Directorate (NVE) has also been tasked with conducting strategic impact assessments on 20 potential sites for offshore wind development. The assessments for Vestavind F, Vestavind B, and Sørvest F will be completed by November 2024, while assessments for the remaining sites are scheduled for June 2025.
Vestavind B and F, located in the Norwegian Sea, are seen as two of the most promising floating wind projects, with each site offering potential for 1 GW of power generation. Vestavind B is located north of Bergen, while Vestavind F is situated south, near Stavanger.
“The continued development of offshore wind in Norway requires access to suitable areas. Our goal is not just energy production but also industrial development, and I’m pleased to see that our supply chain companies are eager to start,” added Aasland.
With the structure of auctions and the government’s support program in place, Norway will announce details of its next auction in 2025. Afterward, the country plans to conduct regularly scheduled tenders as it progresses toward its 2040 goals.
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