Norway 'taking wind's input seriously' ahead of milestone tender, says offshore pioneer

Deep Wind Offshore CEO Knut Vassbotn tells Recharge company also enthusiastic about upcoming Swedish marine spatial plan

Deep Wind Offshore CEO Knut Vassbotn.
Deep Wind Offshore CEO Knut Vassbotn.Foto: Deep Wind Offshore
Norway’s government is “taking input from the industry seriously” as it gears up to open its first 3GW offshore wind tender in March, Deep Wind Offshore chief executive Knut Vassbotn told Recharge.

“The Norwegian government is firm that the opening [of the first tender] will be in March with a tender for lease areas to be delivered around the summer, and then with exclusivity awarded for the three [500MW] projects on Utsira Nord and the one [1.5GW] project on Southern North Sea 2 by the end of the year,” Vassbotn said in an interview.

Norwegian oil and energy minister Terje Aasland in early December had given companies and other interested parties such as fishermen and shipping a 6 January deadline to hand in comments for a consultation ahead of the Nordic country’s first offshore wind allocation. Deep Wind Offshore was among the companies participating in the consultation, the CEO said.

“We are in close dialogue with the government. We are pleased to see that they are taking the input from the industry seriously,” he said.

“And they are adapting [their approach] in a way that is reasonable for them to comply with the comments... so, we are excited to see what will be issued in March.”

Concerns by the wind sector included a warning that many bidders in the gigascale auction could be blocked from participation, if a proposed stipulation for the Southern North Sea 2 area were to find its way into auction rules that bidders must have experience with providing grid links with high-voltage direct current (HVDC) technology.

The government has been trying to narrow down the field of applicants through a set of pre-qualification criteria to ensure only bidders with a certain level experience and financial strength will move to the decisive competitive bidding phase.

Norway with the auction of three floating wind areas at Utsira North and one bottom-fixed or allocation through qualitative criteria of the 1.5GW fixed-bottom or floating zone Southern North Sea 2 aims to turbo charge offshore wind deployment in the country as a steppingstone to eventually reach 30GW by 2040 – a target Vassbotn thinks could be even higher.

“I agree that the 30GW plant for 2040 is needed. I think the need will certainly be larger.”

Norway typically produces around 140 to 150TWh of electricity per year. In order to meet its Paris climate agreement targets, decarbonise existing industries, ensure growth for new industries – thus “practically electrifying society” – the country will need another 40TWh or more annually by 2030 alone, he added.

“The big volumes will come from offshore wind. The two projects now being awarded this year can alone contribute with 6-7TWh each.”

Oslo-based Deep Wind Offshore counts shipping giant Knutsen OAS among its main shareholders.
Swedish marine spatial planning
The company is also advancing with its projects in Sweden, which has a development-led system in which developers will soon be able to obtain permits without competitive tenders after a thorough scrutiny by local, regional and federal authorities, including the military.

“There is a marine spatial plan draft coming out in March. It will be exciting to see what is included in that one,” Vassbotn said.

“There is certainly good feedback from Ebba Busch, the [new] energy minister, realising that offshore wind will a play part in the energy mix going forward.”

The company last year unveiled a plan for a multi-gigawatt complex of floating wind arrays in the Baltic Sea off Sweden, with the aim to lead of with the 1.5GW Erik Segersäll project in 100-200 metres deep waters between the island of Gotland and Stockholm.

Sweden currently has only 192MW of operating offshore wind capacity as the government so far hadn’t provided any dedicated support for offshore wind, which it is trying to address now in the form of up to 10GW of free grid links to be provided to developers starting in 2029.

Among developers queuing up for multi-gigawatt wind power permits off Sweden are Nordic developer OX2, which has teamed up with the investment arm of Ikea owner Ingka Group, Danish offshore wind champion Orsted and Spanish renewables giant Iberdrola.
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Published 17 February 2023, 07:15Updated 20 February 2023, 13:22
EuropeNorwaySwedenDeep Wind OffshorePolicy