Sørlige Nordsjø II
Article | Last updated: 11/09/2024 | Ministry of Energy
The area of Sørlige Nordsjø II is located south in the North Sea, close to the border to Denmark, and was opened for renewable offshore energy production on the 12th of June with a capacity of 3000 MW. Ventyr SN II AS won the auction for the allocation of a project area for offshore wind in Sørlige Nordsjø II on the 20th of March 2024.
On the 29th of March 2023, the Ministry of Energy announced the competition for a project area for offshore wind for the first phase of Sørlige Nordsjø II. The installed capacity in the project area was minimum 1400 MW and maximum 1500 MW.
The project area was awarded through an auction. To participate in the competition, the actors had to meet the prequalification criteria "Execution capacity" and the minimum requirements for "sustainability” and “positive ripple-effects". In February 2024, a total of five actors were qualified to participate in the auction.
The winner of the auction was the one who was willing to bid the lowest contract price in a two-way contract for difference. A two-way contract for difference is a long-term agreement with the state, which gives the power producer risk relief in the form of a guaranteed power price for an agreed period in the operational phase. The two-way contract for difference also provides a possible upside for the state if the power price is higher than expected. If the power price in the market is lower than the contract price, the state covers the difference. If the power price in the market is higher than the contract price, the producer pays the difference to the state. The Norwegian parliament has decided that the upper limit for support from the state is NOK 23 billion.
On 20 March 2024, Ventyr SN II AS won the auction with a bid of 115 øre/kWh. The company was granted a time-limited exclusive right to the project area and to submit a notification with a proposal for a project-specific investigation program and to apply for a licence. The contract for difference with the state was signed in April 2024.
Documents for the first phase of Sørlige Nordsjø II
- Announcement of competition for a project area in Sørlige Nordsjø II for offshore renewable energy production
- Template for application letter for Sørlige Nordsjø II
- Justification for redaction of application
- Project area grid connection and regulatory conditions for the first phase of Sørlige Nordsjø II
- Template for confirmation of intention to support applicant
- Template for confirmation of obligation to be liable for liquidated damages
- Confirmation of credit framework for the issuance of on-demand guarantee
- Form of on demand guarantee
- Minimum requirements for sustainability and positive ripple effects