NORWAY has awarded its first North Sea wind farm licence to a group made up of Ikea store owner Ingka Group and a Japanese power joint venture, the energy ministry said on Wednesday (Mar 20).
The government hopes the auction for the right to build 1.5 gigawatts (GW) of capacity in the North Sea using bottom-fixed wind turbines will be the starting point for massive offshore power developments in the years leading up to 2040.
“This is a milestone for the government’s offshore wind ambition,” Energy Minister Terje Aasland told a press conference.
The winners of the three-day Sorlige Nordsjo II tender, bidding as Ventyr group, beat a joint rival offer from Norway’s Equinor and Germany’s RWE, the only other group to bid among the five groups that were pre-qualified.
“This achievement underscores our commitment to driving positive change through renewable energy innovation,” Ventyr project manager Jorne Bluekens said in a statement.
Norway aims for 30 GW of installed offshore wind capacity by 2040, as it seeks to move away from fossil fuels to cut greenhouse gas emissions.
Equinor shares rose after the tender announcement – a sign that some investors feared Norway’s biggest company could end up spending too much on projects less profitable than its oil and gas business and were relieved it did not win.
But Equinor will continue to pursue other offshore wind options in Norway, a senior executive said.
“We participated in the auction with the goal of winning at a price level where we could develop a good and profitable offshore wind project,” Equinor executive vice-president Pal Eitrheim said in a statement to Reuters.
“Now, the result of the auction shows that another player has a lower bid than us, and we must accept that,” he added.
Ingka, the owner of most Ikea stores, owns 49 per cent of Ventyr, with the rest controlled by Parkwind, majority owned by Japan’s Jera, a 50-50 joint venture between a unit of Tokyo Electric Power Company and Chubu Electric Power.
Ventyr did not say how long the development could take or how much it would cost. The company did not immediately respond to a request for further comment.
The descending-bids auction resulted in a subsidy for the winner of 1.15 kroner (S$0.22) per kilowatt hour of electricity under a 15-year contract for difference capped in advance at a total of 23 billion crowns.
Germany’s Energie Baden-Wurttemberg had pulled out of the process ahead of the auction. The remaining groups that did not bid were a consortium of Aker Offshore Wind, BP and Statkraft, and a joint project by Shell, Lyse and Eviny.
Aasland said Ventyr’s owners had formed a “solid group” with necessary funds and expertise.
“The Ikea family group is a key source of financing and has a sustainability strategy they want to carry out. And Parkwind, which was acquired by Japanese owners, has broad experience with ocean wind and other power projects,” Aasland said.
Ingka was not immediately available for comment. REUTERS
