ESA approves aid for Norwegian offshore wind farm development

The EFTA Surveillance Authority (ESA) has today approved aid for the operation of an offshore wind farm to be established as part of Phase I of Sørlige Nordsjø II, a wind field on the Norwegian continental shelf.  

The measure aims to increase renewable energy production, promote innovation, and contribute to technological and industrial development. It will help Norway reach its emissions-reduction targets and contribute to the country’s clean energy transition. 

The Norwegian authorities in December 2023 notified ESA of the planned aid for offshore electricity production in Sørlige Nordsjø II, an area located in the Norwegian part of the North Sea. The aid concerns only the first of several phases of the development of Sørlige Nordsjø II (Southern North Sea II). 

The aid will take the form of a two-way contract for difference, where the state pays the difference if the market price is lower than the strike price offered by the beneficiary, and the state receives the difference if the market price is higher than this strike price. The beneficiary and aid intensity will be determined based on a competitive procedure. Interested parties will have to qualify to participate in the tender. The aid will be granted to the bidder offering the lowest strike price measured in NOK per kWh.

The Norwegian Ministry of Petroleum and Energy (The Ministry of Energy as of 1 January 2024) will grant the aid and the overall budget of the scheme is NOK 23 billion. 

Following dialogue between ESA and the Norwegian authorities, the scheme has been approved in accordance with the European Commission’s Temporary Crisis and Transition Framework.

Read ESA's decision here. 

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