Equinor asks authorities to consider new areas for bottom-fixed offshore wind farms closer to shore

In a submission to the government’s offshore wind plan, Equinor points out that new areas for bottom-fixed offshore wind should be considered closer to shore in order to cut costs in future projects.

In a submission to the Norwegian government, Equinor notes that the currently identified offshore wind areas are located far from land, which makes the projects dependent on HVDC technology with high investment costs.
System operator Statnett and the Norwegian Conservative Party have long pointed out that it would be more profitable and require less government support to develop bottom-fixed offshore wind farms using hybrid cables. The government, however, disagrees.

”Statnett’s analyses of grid solutions for Sørvest F show that a hybrid project would not only be more cost-effective than a radial project but could also help reduce electricity prices and strengthen the power balance in Norway.

The commercial framework for such projects is currently being discussed in Europe, and a key element is how costs and benefits are distributed among the participating countries,” writes Daniel Rogstad, Equinor’s head of offshore wind in Norway, in the submission reviewed by EnergyWatch’s sister media in Norway, EnergiWatch has .

”Hence, it is important that Norwegian authorities engage in this discussion now to lay the groundwork for commercial solutions that are advantageous for Norway,” the submission continues.

A long-term effort

During the previous parliamentary term, the Labour Party and the Centre Party agreed that neither would “approve new interconnectors to other countries during this parliamentary term,” as stated in the government declaration.

However, they disagreed somewhat on whether cables from offshore wind—so-called hybrid cables—could be considered interconnectors. After the Centre Party left the government, the government announced that it would not proceed with hybrid cables, but would instead focus on floating offshore wind with radial cables.

”We believe that now is not the time to proceed with planning hybrid cables. Costs are high, it is difficult to achieve profitability in these projects, the regulatory framework at the European level is not in place, and in a time of instability in the European power market,” Energy Minister Terje Aasland said at the time:

”I am skeptical about further exposing the Norwegian power system to the power challenges we have seen in Germany and other countries on the continent. Instead, the government will prioritize floating offshore wind projects with radial layout.”

The discussion in Europe is already underway, and as EnergiWatch has previously reported, Germany and Denmark have entered into an agreement regarding the Bornholm Energy Island (3.2GW). The energy island will supply electricity to both countries, with Germany contributing 70 percent of the funding and Denmark covering 30 percent.

”This is a long-term effort, and it is important to start now even if establishing new connections to Europe is not on the agenda in the short term,” Rogstad points out.

A sensible reassessment

Equinor notes that radial projects to Norway can be established more quickly than hybrid projects, since they do not depend on agreements with other countries. At the same time, it is emphasized that such solutions have poorer socio-economic benefits and will be dependent on state support, as was the case for Sørlige Nordsjø II.

”At the same time, bottom-fixed offshore wind is more affordable than floating offshore wind and will be able to deliver greater power volumes at lower costs. The challenge with the currently identified areas for bottom-fixed offshore wind is that they are located far from land and therefore depend on HVDC technology, which is costly,” says Rogstad, adding:

”It may therefore make sense for the authorities to reassess potential areas for fixed-bottom offshore wind that are closer to shore and can utilize AC technology, thereby requiring lower subsidies than the currently identified areas.”

In 2023, The Norwegian Water Resources and Energy Directorate (NVE), in collaboration with a directorate group, identified 20 areas that will make it possible to allocate areas corresponding to 30 GW of offshore wind by 2040.

The areas for bottom-fixed offshore wind closer to shore than Sørlige Nordsjø II, which NVE proposed in 2010 and 2012, were not included in the latest round because the directorate prioritized identifying areas where the potential for conflict is as low as possible.

(This article is provided by EnergyWatch’s sister media in Norway, EnergiWatch)
English edit by Daniel Frank Christensen