Recent months have seen good news and disappointing news in Norway’s emerging offshore wind sector, with an award for its first-ever offshore windfarm tempered by a further delay to plans to build the country’s first floating windfarm.
In March 2024, it was confirmed that Ventyr Energy, a partnership between Parkwind and Ingka Group, with NorSea as a strategic partner, had won Norway’s first auction for offshore wind.
Ventyr SN II, the entity responsible for the project, is jointly owned by Parkwind, part of the global renewable energy company and now part of JERA Nex, and Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer. Parkwind brings extensive experience and expertise in developing, financing, constructing and operating offshore windfarms in the European market. Ingka Investments brings significant financial resources in addition to its focus on sustainability and the transition towards renewable energy. NorSea has extensive experience in ports and in operating offshore bases.
Five bidders qualified to participate in the auction to develop a bottom-fixed windfarm in the Sørlige Nordsjø II area in the Southern Norwegian North Sea, although one, EnBW, dropped out shortly before the auction and only two of the five actually participated in the process, which concluded on 20 March 2024, having started on 18 March.
Sørlige Nordsjø II is approximately 140 km off the southwest coast of Norway. The wind energy capacity developed there is due to come into operation in 2030. The winning bid in the auction was 115 øre/kWh, which is approximately €100/MWh or US$107/MWh.
Bidders in the auction competed for state support via a reverse auction, submitting bids until one bidder remained. The consortia offering the lowest bid won the auction. Now the auction process has concluded, Ventyr will be awarded a two-way contract for difference. The Norwegian parliament, the Storting, has stipulated that the upper limit for support from the state is Nkr23.0Bn (US$2.2Bn).
The consortia that qualified to participate in the auction, which is for bottom-fixed offshore wind, were Aker Offshore Wind, BP and Statkraft; Equinor and RWE; Norseman Wind, a subsidiary of EnBW; Shell, Lyse and Eviny; and Ventyr.
Speaking at the time the announcement was made, Norwegian Prime Minister Jonas Gahr Støre said, “This government has worked to realise offshore wind in Norway since day one, and today we have conducted the first successful auction. Norway has sea areas with rich wind resources and a supplier industry with world-leading technology expertise. We will build on that in the years to come by announcing new areas and new auctions.”
Energy Minister Terje Aasland said, “This is a milestone in the government’s offshore wind investment. We have taken a big step forward in the work to develop offshore wind in Norway.”
The contract between the government and the developer was formally signed in April 2024 when the Minister of Energy met with key personnel from Ventyr SN II who will be responsible for developing what will be the first major offshore wind project on the Norwegian continental shelf.
“I firmly believe Sørlige Nordsjø II can be a catalyst for achieving our ambitions in the offshore wind industry,” said Mr Aasland. “This project also presents an opportunity for the Norwegian supply industry to play a central role in a new industrial era.”
Parkwind co-chief executive François van Leeuw said, “Ventyr is excited to take the next step in the development of the Sørlige Nordsjø II project. Together, we are fully committed to drive positive change through innovation in renewable energy and bringing this project to fruition while delivering tangible benefits to local communities and to Norway as a whole. We are honoured to be part of Norway’s renewable energy future and contribute to its ambition to deliver 30 GW of offshore wind by 2040.”
