Brigg Vind, a consortium comprising Corio Generation, Vårgrønn, and Å Energi, has decided not to submit a pre-qualification application for the development of a bottom-fixed offshore wind farm in the Sørlige Nordsjø II (Southern North Sea II) area in Norway.
Brigg Vind consortium said that it worked extensively on pre-qualification application and completed a detailed economic analysis for the first phase of Sørlige Nordsjø II.
However, after careful consideration of the prevailing cost structure, market conditions, timeline, Contract for Difference (CfD) terms and other regulatory factors, Brigg Vind concluded that the commercial requirements to participate in the planned auction in February 2024 are not met, said the consortium.
“As Brigg Vind will not submit a bid under current market conditions and frameworks, we believe it would be wrong to participate in the pre-qualification process,” said Brigg Vind.
According to the consortium, if the framework conditions are substantially changed, or the auction is significantly delayed, Brigg Vind would expect a new pre-qualification process to be organised, and, if so, the consortium will evaluate if conditions for prequalifying are met.
This decision will not impact other ongoing competitions in which Brigg Vind partners Vårgrønn, Å Energi, and Corio Generation are engaged, the consortium added.
The Norwegian government officially opened the application window for Norway’s first offshore wind auction on 29 March, offering a combined capacity of 3 GW across two areas, 1.5 GW at Southern North Sea II and 1.5 GW at Utsira Nord.
The Norwegian Government received seven applications to participate in the auction for the Southern North Sea II area.
Currently, the tender has a tentative deadline of February 2024, according to Norway’s Ministry of Petroleum and Energy.