First important step made in Portugal’s offshore wind plan

Norwegian companies visited Portugal in September.
by Arne Vatnøy
Communication manager

The first auction for floating offshore wind in Portugal has just been launched. The public policy goals set is good news for the Norwegian industry.

-Norwegian developers and supply chain companies have extensive experience in offshore wind projects. The expression of interest with focus on offshore wind experience is therefore a perfect fit for the Norwegian supply chain, says Einar Tollaksvik, who is heading up the working group for Portugal in Norwegian Offshore Wind. 

Submissions of expressions of interest are due within 10 working days from date of publication of the Portuguese government announcement. 

Working Group Leader Einar Tollaksvik and members of Norwegian Offshore Wind met with the Portuguese State Secretary of Ocean José Maria Costa.

Allocation plan

The public hearing of the Allocation plan for Exploration of Renewable Energy (PAER) was published on 17th of October with deadline on December 12.  This is the first of three steps for Portugal to reach their ambitious objective in offshore wind.   

Portugal has set a target of 10 GW of installed offshore wind by 2030. The government has therefore established a National Working Group for the Planning and Operation of Offshore Wind. Their input to the government was published in august.

-Portugal delivers on the comprehensive regulatory framework, kickstarted by the prequalification phase already next year. With the extensive experience from offshore wind that Norwegian wind farm developers and EPCI have, they will be good partners for their Portuguese counterparts. 2024 could be an exciting year for Norwegian companies in Portugal. The timing is perfect, now it’s time to act, says Tor Arne Johnsen, who is in charge of the Portuguese market in Norwegian Offshore Wind. 

The expression of interest with focus on offshore wind experience is therefore a perfect fit for the Norwegian supply chain

Einar Tollaksvik, Working Group Leader in Norwegian Offshore Wind

The report consists of the following steps:

Plan for Allocation of Maritime Areas for Exploitation of Renewable Energies (PAER)

To start, three areas have been suggested with a total capacity of 8 GW: Viana do Castelo (2GW), Leixios (2GW) and Figueira da Foz (4) with a total of 20 x 500 MW lots have been suggested. The first auction to include seven sites with a total capacity of 3.5 GW.

Approval of these proposals, within the Plan for Allocation of Maritime Areas for Exploitation of Renewable Energies (PAER) is scheduled for Q4 2023 and is a prerequisite for the first site auction.

Prequalification and auction 

Two competitive auction models are under consideration, and each auction could include either or both:

Centralized’ model: 

Comes with grid connection (TRC), site exclusivity (TUPEM) and an offtake contract in the form of a 20-year CfD. Evaluated with 70% price criteria and 30% non-price. Given the absence of adequate site data, a prequalification is proposed, with successful candidates given time to perform site characterisation prior to bidding.  

Decentralized’ model: 

Site only competition (TUPEM) with price and non-price-based award criteria. Grid connection will be later awarded.  No offtake agreement. Site studies performed independently by the developer for their own areas of interest within the wider areas of the PAER. The decentralised procurement process is to be applied to PAER spatialised areas that are not made available through a centralised procurement process.

Norwegian Offshore Wind organized a visit to Portuguese ports in September.

Ports and supply chain

Portugal has well-established onshore wind, metalworking and cement sectors that can be leveraged and play a key role in the emerging floating wind sector. National ports are seen as key for domestic production and export globally. Portugal is proposing to specialise ports across manufacture, assembly, O&M and Decommissioning.

Norway is ready for collaboration

The working group in Norwegian Offshore Wind aimed at the Portuguese market is growing in memberships and increasing activities. 

- The market is moving in Portugal now, which is a great starting point for the Norwegian supply chain to enter. Undoubtfully, there are great synergies between the Norwegian and Portuguese supply chain, also on tier 2 and tier 3 level, says Einar Tollaksvik from Saga Subsea, who is heading up the working group for Portugal & Spain. 

Together with Forum Oceano and WavEC, Norwegian Offshore Wind will set up matchmaking events in Portugal in the beginning of 2024. Norwegian Offshore Wind is working closely with the embassy in Lisbon. 

-There is good progress in the process of announcing the first offshore wind areas in Portugal. The Portuguese authorities have set ambitious goals and are following through in practice. This provides significant opportunities for Norwegian companies in the Portuguese market in the coming years within offshore wind and port development, says Norway's ambassador in Lisbon, Hanne Brusletto.

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