In May 2022, Norwegian Prime Minister Jonas Gahr Store announced the ambitious plans for Norway to become one of the leading global producers of wind energy. Norway aims to construct 30GW of offshore wind by 2040, with licensing rounds for sites due to be released starting from 2025.
This increase will nearly double the country’s current power output, offshore wind turbines will go from two in operation currently to approximately 1500 in the next twenty years. The grid connections will be complex as the electricity output will need to be connected to Europe via radial cables as Norway’s power grid will not be able to deal with the amount of energy produced.
The announcement marks the country’s first offshore wind targets, as the country aims to exploit their vast coastline. The first zones have already been announced, including the Utsira North and Sorlige Nordsjo 2 sites which will have a future installed capacity of 4.5GW. However, the full allocation will be an area five to six times the size.
The announcement sets Norway as an attractive prospect for leading wind investors and developers, with key players devising strategies for future auctions.
1) Green Investment Group (United Kingdom)
The Macquarie-owned Green Investment Group (GIG) has acquired a substantial wind portfolio across Europe and Asia, with over 8GW of installed Asian wind. In February 2022, the group announced a partnership with Norwegian energy group Adger Energi to bid for a floating offshore wind farm located in the Utsira Nord zone. The zone has a potential installed capacity of 1.5GW, the partnership will strike a perfect balance between GIG’s previous experience overseeing floating wind projects and Adger Energi’s market knowledge. The project will supplement GIG’s Norway portfolio, having previously acquired the 80MW Buheii wind farm located in southern Norway.
2) Aquila Capital (Germany)
The renewables investment fund of the Hamburg-based renewables group has acquired a diversified portfolio including Norwegian wind projects. In 2019, Aquila Capital acquired one of the largest European wind farms with an installed capacity of 400MW. The project is located in Mosjoen which is in the north, in the Vefsn municipality. The project was developed by Eolus and construction was completed in 2021, with a PPA previously agreed to a nearby aluminum smelter.
3) Taaleri Energia (Finland)
The Helsinki-based wind and solar group are one of the largest private equity owners of Finnish wind. The investment arm of the renewables group has released three funds, with SolarWind II fund raising an additional €44m December 2021. Taaleria Energia has acquired projects located in Poland, Texas, Norway, and Spain. The fund has acquired several Norwegian projects, dating back to 2019 with the purchase of the 91MW Oltava wind farm. The second deal completed by the fund was the acquisition of the 34MW Haram wind project, located in western Norway. The project was developed by Zephyr and is comprised of 8 Vesta wind turbines. SolarWind II aims to finance 850MW of wind and solar assets in Europe.
Image Source Unsplash 24.06.2022
