Brigg Vind, the offshore wind consortium of Vårgrønn, Å Energi and Corio Generation, has worked extensively on our pre-qualification application, and completed a detailed economic analysis, for the first phase of Sørlige Nordsjø II. After careful consideration of the prevailing cost structure, market conditions, timeline, Contract for Difference (CfD) terms and other regulatory factors, we have concluded that the commercial requirements to participate in the planned auction in February 2024 are not met.
We interpret the commitments associated with the pre-qualification to imply that consortia applying for pre-qualification should have a clear intention to submit a bid in the upcoming auction in February. 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. Consequently, we are not submitting our pre-qualification application on 15 November.
In the event that the framework conditions are substantially changed, or the auction is significantly delayed, we would expect a new pre-qualification process to be organized. If so, Brigg Vind will evaluate if conditions for prequalifying are met.
We are confident that Brigg Vind would have pre-qualified and delivered a strong offshore wind project. It has therefore been a difficult decision for the consortium not to advance in this first award process in Sørlige Nordsjø II.
Brigg Vind believes strongly in the long-term potential of commercially viable offshore wind projects in Norway, where offshore wind is uniquely positioned to generate vast amounts of renewable power, reduce emissions, and create new jobs and industry. We remain committed to playing a part in realising Norway’s significant offshore wind potential.
We appreciate the dialogue we have had with the authorities, suppliers, partners and other stakeholders in our work to date. We look forward to continuing that dialogue in relation to the Sørlige Nordsjø area and the offshore wind industry in Norway in general.
This decision will not impact other ongoing competitions in which Brigg Vind partners Vårgrønn, Å Energi and Corio Generation are engaged.