NORWEA

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Norway lacks a domestic market for offshore wind, at the same time Norwegian companies have market shares in the North Sea market. The hope is that a demonstrator in Norwegian waters will power more companies onto the international scene.

NORWEA
Wergelandsveien 23B
0167 Oslo
Norway

Daniel Willoch
+47 (0)47 34 93 48
www.norwea.no
willoch@norwea.no
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Norway lacks a domestic market for offshore wind, at the same time Norwegian companies have market shares in the North Sea market. The hope is that a demonstrator in Norwegian waters will power more companies onto the international scene.

Renewables target

Norway has set a renewable energy target of 67.50 per cent of total energy use by 2020. New renewable electricity production is supported through the el-certificate scheme. The scheme is a co-operative effort between Norway and Sweden to increase production from renewable capacity by 28.40TWh by 2020 (2021 for Norwegian projects). Of the total capacity in the system, Norway is financing 13.20TWh, and Sweden the remaining 15.20TWh. This means Norway will achieve 13.20TWh towards its renewables target, irrespective of where the physical installations are built. The certificates are non-technology or country specific, and tradeable on a common exchange. Certificates are issued by the state directly to producers of new renewable electricity, and traded on an open market. From 2021, Norwegian projects will no longer be eligible for the certificates. Sweden continues with the scheme through to 2030 with an additional 18TWh target. Which mechanisms will be promoting the construction of new renewable capacity in Norway post 2020 is so-far unknown.

The Norwegian offshore wind market

There are no commercial offshore wind farms in operation or under construction in Norway. Since the deployment of the 2.30MW HyWind I floating demonstrator there has been talks of moving the installation to a petro-maritime facility for electrification trials. There are two other 10MW demonstrator concessions in the waters around HyWind, near Karmøy in Rogaland. There is a 10MW demonstrator concession for floating installations near Stadt in Sogn og Fjordane. Additionally, the company Vestavind Offshore owns a 350MW commercial offshore wind concession in the Norwegian Sea, named Havsul I. Final concession for Havsul I was given in September 2009. Recently, we have seen renewed activity around Havsul I. Politically, the concern for offshore wind has kicked up with increased insecurity in the national oil and gas sector. Parliament has recently asked that the government “in the 2018 budget at the latest, present a strategy for commercial development of floating wind mills, which can contribute to profitable electrification of the Norwegian shelf”. Previously parliament has asked for a support scheme for demonstrator projects by 2017, and a strategy for demonstrator projects which was to be delivered in 2016, which was cancelled.

Norway in offshore wind

While there is no domestic market for offshore wind, both Statoil and Statkraft are Norwegian companies with experience in developing and operating offshore wind projects. Statkraft has announced that it will not be engaging in new offshore wind projects after the completion of the 400MW Dudgeon project it co-owns with Statoil. Statoil and Statkraft also developed and built the 317MW Sheringham Shoal project, for which Statoil will be taking over the operation from 2017. Additionally, Statoil is buying into Statkraft’s share of the Dogger Bank projects, leaving Statoil with a potential 50 per cent stake.

Simultaneously, Statoil are continuing the development of the spar-floating concept HyWind. The company is in the process of deploying the second demonstrator, anchoring five 6MW turbines in 100-metres depth at the HyWind Scotland site north-east of Aberdeen in the North Sea. Moreover, Norwegian companies are represented in the market for – among other – jack-ups for installation, crane and access equipment, production planning and control software as well as weather forecasting. However, many relevant Norwegian companies remain outside the international offshore wind market – and NORWEA and others are calling for the rapid realisation of a demonstrator project in Norwegian waters.

 
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