Offshore Wind in Scandinavia

Offshore Wind in Scandinavia

1

Table Of Contents Current state of affairs Regulatory framework

4 8

Offshore wind in Norway Areas opened for development Other state aid support for offshore wind Outlook for offshore wind in Norway

10 12 13 13

Offshore wind in Denmark Recent developments Ongoing Danish tender for 2.8 GW offshore wind capacity Regulatory framework Outlook for offshore wind in Denmark

16 18 19 20 23

Offshore wind in Sweden Recent developments Regulatory framework Outlook for offshore wind in Sweden

24 24 25 25

Current state of affairs

Regulatory framework

4

5

Offshore wind in Norway

Offshore wind in Denmark

Offshore wind in Sweden

10

16

24

Current state of affairs

Scandinavia possess one of the world’s best offshore wind resources. The combined offshore wind target of Norway, Denmark and Sweden stands at approximately 90 GW by 2040.

4

Each of these Scandinavian countries has identified offshore wind as a central component of its respective energy transition strategy.

Whilst Denmark is a pioneer in offshore wind, Norway and Sweden are newcomers in the industry in terms of large-scale projects on home ground.

As at the date hereof, the total installed offshore wind capacity in Scandinavia amounts to approximately 2.9 GW, comprising 88 MW in Norway, 2.67 GW in Denmark and 161 MW in Sweden. An overview of offshore wind farms currently in production and under development in each jurisdiction is set out below.

5

Hywind Tampen

Utsira Nord

Norway

Poseidon Fredrikshavn

Sørlige Nordsjø II Rødland Vesterhav Nord

Nissum Breding Aholt

Denmark

Thor North Sea I Mid/North Sea I South

Vesterhav Syd Tunø Knob Horns Rev III Samsø

Horns Rev II Horns Rev I

Overview of offshore wind farms in Scandinavia

6

Lillebælt

Sprogø

Rødsand II

In production Under developement

Sweden Galene

Kårehamn

Bockstigen

Kattegatt Syd Hesselø Jammerland Bugt Lillgrund Middelgrunden Avedøre Holme Kriegers Flak

Nysted

7

Regulatory framework

Denmark

Sweden

Tender deadline for Hesselø and North Sea I Mid

Expected entry into force of new auction system

20 May 2026

8

1 July 2026

Norway

By end of 2026

The government is expected to announce the new offshore wind plan

The regulatory frameworks governing offshore wind development across Scandinavia vary significantly in both approach and maturity.

Norway and Denmark employ government-led auction processes for the award of offshore wind development rights, whereas Sweden currently operates an open-door procedure under which developers may propose projects without prior site designation by the state.

In Norway, the allocation of a project area confers a time-limited exclusive right to conduct a project-specific impact assessment and subsequently apply for a license. However, the award of project area rights does not confer any entitlement to a license. Following the award of a license, the developer must submit a detailed plan, which must be approved before construction of the offshore wind facility may commence production. Project area rights may be awarded through two mechanisms: either through an auction or an award based on qualitative criteria.

Denmark also uses government-led competitions for offshore wind development rights, following the repeal of the former ‘opendoor’ procedure. In the current ongoing offshore wind tender, project area rights are awarded on the basis of the lowest bid price (DKK/MWh) in the CfD auction, subject to the tenderer satisfying applicable technical and professional capacity requirements. The winning tenderer is awarded a concession to exploit the area and must thereafter obtain all necessary permits and licences prior to commencing construction.

Sweden currently lacks a comprehensive regulatory framework for offshore wind development. The existing regime is characterised by complex permitting procedures administered across multiple governmental levels, with no mechanism for developers to secure site exclusivity during early-stage development. The Swedish government has indicated its intention to streamline the permitting process, drawing on a model closely aligned with the Norwegian system.

9

Offshore wind in Norway While Norway is home for many of the world leading offshore wind suppliers, large-scale projects are still in its infancy in Norway.

In 2009, the Hywind Demo floating offshore wind turbine was installed. In 2023, Equinor commissioned what is till the world’s largest offshore wind farm; Hywind Tampen. Other ongoing technology developments include the Enova-supported pilot initiatives, GoliatVIND and WindCatching Systems. These projects are both part of the state’s targeted efforts to foster Norwegian leadership in floating offshore wind technology.

In the last years, however, large scale offshore wind projects have matured. In 2024, Ventyr

10

was awarded development rights for the first large scale offshore wind project in Norway, the bottom-fixed Sørlige Nordsjø II offshore wind farm (“SN II”), and in late 2025, the two consortiums Equinor-Vårgrønn and EDF-Deep Wind Offshore were awarded development rights for floating offshore wind farms in the Utsira Nord area (“UN”). Despite very strong interest initially when the SN II and UN competitions were launched (as illustrated below), the competitions attracted very low interests in the end, where only Ventyr and Equinor submitted bids for the SN II project, and the two winning UN consortiums were the only consortiums that submitted applications for the UN process, reflecting the challenges faced by the offshore wind industry the last years.

11

Areas opened for development

The Norwegian government has to date identified 20 areas for offshore wind development, of which the Sørlige Nordsjø and the Utsira Nord areas have already been opened. Whereas the SN II auction was carried out as a combined auction for development rights and state support through a two-sided CfD (similar to the ongoing competition in Denmark), the Utsira Nord development rights were awarded through a qualitative competition, with the auction for state aid support expected to be held in 2028.

Sørlige Nordsjø II On 20 March 2024, Ventyr SN II AS, the joint venture between Jera Nex bp and the Ingkagroup, won the SNII auction and entered into Norway’s first CfD with the Norwegian government providing at a strike price of 115 øre/kWh. The state aid support under the CfD is capped at NOK 23 billion, subject to inflation adjustment from 2023 until completion of the project. The projected date for commercial operation is in the early 2030s.

Utsira Nord In December 2025 it was announced that the two consortiums Equinor-Vårgrønn and

12

EDF-Deep Wind Offshore were awarded developments rights in the Utsira Nord area.

The Ministry’s initial plan was to award three project areas in the broader Utsira Nord area, however, by the deadline for submitting license applications on 8 September 2025, only the two consortiums had submitted applications.

In contrast with the SN II auction, where the revenue support is provided by way of a CfD, the UN support model is by way of an investment support for the financing of the project’s investment CAPEX. The total cap is set at NOK 35 billion, subject to inflation adjustment.

The competition for the investment support to UN is contingent upon both consortiums continuing to progress their projects and submitting complete license applications. The competition will be held by way of a sealed-bid auction with each consortium submitting one sealed bid and the winner is the consortium that is willing to develop the 500 MW floating offshore wind farm for the lowest amount of state aid support (within the NOK 35 billion envelope). The winner of the competition will enter into an investment agreement with the Norwegian state on the terms published by the Ministry.

Other state aid support for offshore wind On 24 November 2025, ESA approved a new Norwegian state aid scheme, aimed to speed up the development of floating offshore wind technology by supporting smaller-scale projects. The aid will be distributed through several competitive bidding rounds, the first taking place in 2026 and the scheme will last until 2030. The budget is up to NOK 10 billion and is replacing the previous Norwegian aid scheme for investments in floating wind which expired on 31 December 2025.

On 18 February 2026, Enova announced that five applicants have applied for support under this scheme, collectively seeking approximately NOK 9 billion in support for their respective demonstration projects. The proposed demonstration facilities range from one to five floating offshore wind turbines per project, with certain projects installing among the largest currently available turbines on the global market. Enova is expected to announce the successful applicants and corresponding support allocations during spring 2026, subject to the possibility of a subsequent application round in 2026 or 2027.

Outlook for offshore wind in Norway The political landscape for offshore wind has shifted following the 2025 election, which

featured significant criticism of the high costs and subsidies associated with offshore wind developments in general. While the current government (Labour party) maintains its offshore wind ambitions, the parliamentary composition has increased uncertainty in energy policy.

Yet, the government’s activities reflect a commitment to achieving the award of development rights of 30 GW of offshore wind capacity by 2040. To facilitate further development, the government intends to ensure predictability through regular licensing rounds and state aid competitions, pursue an active industrial policy that promotes investments, strengthen cooperation around the North Sea basin. The government has communicated it will present a plan for the future offshore wind projects in Norway during the course of 2026.

The level of state aid support for future offshore wind licensing rounds in Norway remains to be seen. Other key outstanding questions include the structure of revenue support (whether by way of CfD or investment support) and which other measures that will be implemented in order to realize the next large scale offshore wind projects in Norway.

13

Kvitebjørn Havvind AS

Utsira Nord

ige Sørl sjø d Nor

14

Norway

Sweden

Denmark 15

Offshore wind in Denmark

Denmark is a global frontrunner in offshore wind, with 2.67 GW installed capacity divided among 17 operational offshore wind farms. As of the date hereof, 9 GW of additional offshore wind capacity is planned to be tendered over the coming years.

16

17

Recent developments The Danish offshore wind sector has undergone significant developments in recent years.

Following the cancellation of the 6 GW offshore wind tendering process, which was suspended after receiving no bids for the first three of the six offered sites, the Danish Energy Agency (the “DEA”) relaunched a tender on 20 November 2025 for a minimum of approximately 2.8 GW of offshore wind capacity across three sites: Hesselø (approximately 800 MW minimum capacity), North Sea I Mid (≥1 GW minimum capacity) and North Sea I South (≥1 GW minimum capacity). The tender submission deadlines are 20 May 2026 for Hesselø and North Sea I Mid, and 23 October 2028 for North Sea I South.

The remaining pre-surveyed offshore wind sites from the cancelled tender rounds are expected to be re-launched upon improved market conditions.

Additional projects currently under development include Jammerland Bugt (240 MW) and Lillebælt Syd (165 MW), both of which are majority-owned by TotalEnergies, with construction scheduled to commence in 2027.

Notably, several offshore wind projects commissioned in the early 2000s, including Nysted (166 MW), Middelgrunden (40 MW) and Samsø (23 MW), have recently been granted operational lifetime extensions. Other projects, including Horns Rev 1 (160 MW), are currently seeking similar extensions.

18

Ongoing Danish Hesselø, North Sea I & II tender for 2.8 GW offshore wind capacity The procurement process for the ongoing tender in respect of the Hesselø, North Sea I Mid and North Sea I South sites is structured around a two-sided capability-based CfD to be entered into with the Danish state, providing revenue support over a 20-year period. The outcome of each tender is determined on the basis of the lowest bid price (DKK/MWh) submitted, subject to the tenderer satisfying applicable eligibility requirements and demonstrating requisite technical and professional capacity.

The tenderers must demonstrate technical and professional capacity by providing at least one reference project covering a large-scale offshore project relating to energy production completed within the last ten years. In order to qualify as a large-scale offshore project, the project must, as a minimum: (i) have a duration of contract, permit, license, approval or the like of at least 25 years; (ii) have had construction costs (CAPEX) of at least DKK 500 million (or its equivalent in foreign currency); and (iii) have installations fixed to the seabed at an average sea depth of at least 10 metres across the site.

The tenderer must further demonstrate experience in at least three of the following six development phases of the project: project management, engineering, procurement, execution, operation, and quality control.

Notably, no minimum ownership threshold applies to the tenderers.

Norway

Sweden

Denmark

Hesselø

North Sea I Mid/ North Sea I South

19

The successful tenderer shall be granted the exclusive right to exploit the designated area and, subject to full compliance with all statutory and contractual obligations, including the delivery of all required guarantees, be awarded an establishment permit pursuant to the Danish Act on Promotion of Renewable Energy and, thereafter, a 30-year operating licence.

Offshore construction of Hesselø and North Sea I Mid must commence by 31 December 2031, with the minimum capacity operational by 31 December 2032. For North Sea I South, offshore construction must commence by 31 December 2033, with the minimum capacity operational by 31 December 2034.

Failure to meet these milestones triggers a structured penalty regime. In respect of delayed commencement of offshore construction works (comprising e.g. physical infrastructure), the developer is liable for liquidated damages amounting to DKK 2.5 million per month for each North Sea project and DKK 2 million per month for Hesselø, capped at twelve (12) months, such that maximum exposure for construction commencement delay totals DKK 30 million per North Sea project and DKK 24 million for Hesselø. Notably, liquidated damages pertaining to delayed construction commencement are excluded from the overall delay liability cap detailed below. Should offshore construction works remain delayed beyond the twelve-month threshold, the more onerous operational capability delay damages apply from that point until the minimum capacity is achieved.

With respect to delays in achieving operational capability of the minimum capacity, the agreements provide for escalating monthly liquidated damages up to maximum aggregate caps of DKK 720 million for each North Sea project and DKK 465.6 million for Hesselø (calculated on the basis of a 48-month delay period). Termination rights are triggered upon the exhaustion of the applicable cap, pursuant

20

to which the DEA may terminate the concession.

In the event of such termination prior to operational capability, the developer is obliged to remit a lump sum payment reflecting the remaining balance of the capped liability, net of any delay damages already satisfied.

The tender documentation also assumes relief mechanisms pursuant to which the developer may obtain extensions of time without liability for delay damages. Such mechanisms apply, inter alia, to force majeure events, delays attributable to authorities in the granting of permits or approvals, and third-party appeals against relevant permits. In these circumstances, the extension of time constitutes the developer’s exclusive remedy, and no concurrent entitlement to damages arises.

The contractual framework establishes a strict consent regime for post-award ownership changes at the developer level, and any change of control (broadly defined to include, inter alia, direct or indirect ownership of more than 50% of voting rights) requires the prior written approval of the DEA, with consent standards varying temporally. Pre-operational capability transfers trigger a prospective assessment of the transferee’s capacity to construct, operate, maintain, and dismantle the facility, whereas post-operational capability transactions necessitate only an evaluation of ongoing operational and decommissioning capacity. The DEA’s consent is further contingent upon compliance with a series of cumulative conditions, including, inter alia, continued adherence to applicable procurement rules, state aid requirements, foreign direct investment screening regimes, and sanctions or embargo frameworks. Where the successful tenderer chooses to implement the project through a special purpose vehicle as developer, the tender documentation mandates that the successful tenderer co-execute the concession agreement and assume joint and several liability alongside the SPV.

21

Regulatory framework Until recently, two procedures were available for obtaining permits to construct and operate offshore wind projects in Denmark: (i) government-led tenders; and (ii) the ‘open-door’ procedure, which permitted developers to propose projects in areas not designated under the government’s spatial plan.

In December 2023, the Danish government formally terminated the ‘open-door’ scheme following its suspension in February 2023 due to potential conflicts with EU state aid rules, and it was legally repealed with effect from 1 July 2024. Accordingly, permits to construct and operate offshore wind projects in Denmark may now only be obtained through government-led tendering processes administered by the DEA. Following unsuccessful tender rounds, the regulatory framework governing offshore wind development in Denmark has undergone significant amendments, which are more developer friendly. In response to unsuccessful tender rounds widely attributed to cost inflation and revenue uncertainty, the Danish government introduced the two-sided (two-way) CfD. The state’s payments are subject to legally defined project-specific subsidy caps, currently set at DKK 15.7 billion (North Sea I Mid), DKK 6.6 billion (North Sea I South), and DKK 21.9 billion (Hesselø) (exclusive of VAT and interest). Concurrently, the state assumed responsibility for preliminary site investigation costs and defence-related mitigation measures and removed the prior requirement for mandatory 20% state co-ownership in the former “pay-to-play” model.

Certain Danish onshore wind developers, led by Eurowind and European Energy, have recently announced that they intend to lodge a formal complaint with the European Commission

22

regarding the grant of state aid for electricity production during negative price periods, which the developers contend is incompatible with the EU Clean Industrial Deal State Aid Framework.

The DEA has indicated that there is an ongoing dialogue with the European Commission, and it is expected that this matter will be resolved prior to the tender deadlines. As at the date hereof, no formal complaint has been lodged with the European Commission, and no decision has been issued.

On a separate note, a legislative proposal currently under consideration introduces new rules governing export-oriented projects and hybrid connections. The proposed rules would permit foreign transmission system operators to hold ownership interests and exercise operational control over cables situated on Danish territory that connect to overseas grids.

The legislative proposal has been submitted for public consultation and is expected to enter into force on 1 July 2026.

On 20 February 2026, a broad cross-party majority in the Danish Parliament announced its commitment to shift the tax treatment of long-term price hedging contracts with a duration of three years or more from mark-tomarket taxation to realisation-based taxation, pursuant to which gains on such contracts will be taxed only upon actual payments when the contract sets a predictable price for predictable quantities and forms part of the business’s primary operations. The reform is intended to apply to contracts entered into from 1 January 2026 onwards, meaning that it will include the CfD contracts under Denmark’s ongoing offshore wind tender programme. A draft bill is expected to be presented during spring 2026, with all parties having committed to support the legislation once presented to Parliament.

Outlook for offshore wind in Denmark Despite the challenges encountered in recent tender rounds, Denmark’s offshore wind sector retains significant long-term potential. The revised regulatory framework, including statebacked CfD support and the elimination of mandatory state co-ownership requirements, is designed to restore investor confidence and attract competitive bids.

Pending resolution of the state aid concerns raised by onshore wind developers, and subject to European Commission approval, Denmark is well-positioned to maintain its status as a leading jurisdiction for offshore wind development in the North Sea Basin.

Outlook for offshore wind in Denmark Despite the challenges encountered in recent tender rounds, Denmark’s offshore wind sector retains significant long-term potential. The revised regulatory framework, including statebacked CfD support and the elimination of mandatory state co-ownership requirements, is designed to restore investor confidence and attract competitive bids.

Pending resolution of the state aid concerns raised by onshore wind developers, and subject to European Commission approval, Denmark is well-positioned to maintain its status as a leading jurisdiction for offshore wind development in the North Sea Basin.

23

Offshore wind in Sweden

Sweden maintains to be one of the EU’s largest onshore wind portfolios and offers excellent offshore wind resources, yet offshore wind development has been slow to materialise.

Currently, there are three operational offshore wind farms in Swedish territorial waters, all constructed as pioneering projects, with the total installed offshore wind capacity amounting to 161 MW. This capacity comprises the Lillgrund site (110 MW) owned by Vattenfall, the Kårehamn site (48 MW) recently acquired by Aneo, and the Bockstigen site (3.3 MW) which is operated by Momentum Gruppen. years.

Recent developments Between 2022 and 2024, the Swedish 24

Government approved four offshore wind projects: Galene, Kattegat Syd, Poseidon and Kriegers flak. The Kriegers flak project has however recently been indefinitely suspended

by Vattenfall due to ”unviable investment prerequisites in Sweden”.

The Swedish Agency for Marine and Water Management has recently identified and proposed 23 new areas suitable for offshore wind to the Government, with the intention to expand the offshore energy production to 120 TWh per year. Notably, the proposal excludes the areas where 13 permit applications in 2024 were rejected based on assertions that approving these projects would conflict with Swedish Armed Forces interests, meaning that 23 entirely new areas are identified as suitable

Regulatory framework CThe current legislative framework for offshore wind in Sweden is complex and unpredictable, as each project may be subject to variable requirements. The Swedish Government is currently exploring options for streamlining the permitting process for offshore wind project establishment. A government-commissioned report proposes transitioning to an auction system for offshore wind, under which successful bidders would be granted exclusive rights to develop wind power within the relevant areas at an earlier stage. This proposal is expected to enter into force on 1 July 2026. It has been referred for consultation and is currently being reviewed by the Government Offices.

Outlook for offshore wind in Sweden Although Sweden’s offshore wind potential remains significant, the current outlook for the sector is modest. If the Swedish Government succeeds in streamlining the permitting process, this could lead to greater developer confidence.

However, substantial challenges persist regarding the future development trajectory of offshore wind in Sweden.

25

BAHR’s track record BAHR is at the forefront of the offshore wind sector, providing strategic legal counsel to the industry’s most ambitious players. The following provides an overview of selected matters in which our team has recently been involved:

“

Superb knowledge and experience of our industry. Excellent team, both on legal and strategical matters. The BAHR team provides guidance and risk assessment in complex matters which makes decision making more accurate.

- Legal 500

26

Acting as Ventyr’s project legal counsel for the SN II 1,500 MW offshore wind project – Norway’s first large scale commercial offshore wind farm.

Advising Vårgrønn on a range of matters and across project portfolio: Green Volt, Dogger Bank, Celtic Sea and more.

Acting for Parkwind in JV negotiations with CIP and NTE for Utsira Nord floating offshore wind project.

Advising Mainstream Renewable Power on offshore wind projects in the North Sea and globally.

Advising Njordr Offshore Wind in development of Swedish offshore wind projects.

Acting for Vattenfall in their offshore wind farm projects in Norway.

Acting for Eneos in its investment in GoliatVIND, the offshore wind project in North Sea. Advising the TSO Statnett in HVDC subsea interconnector between UK and Norway.

Advising Aker Offshore Wind in a range of offshore wind development projects globally.

Advising the offshore wind vessel supplier Havfram in the offshore wind JV with RWE and NTE. Advising Norsk Havvind in connection with JV negotiations with TotalEnergies and Iberdrola.

Advising NationalGrid in the development of the NorthConnect interconnector project.

Advising Offshore Norge in connection with contributions to the regulatory framework for offshore wind developments.

Assisting Aker Solutions in HVDC contracts negotiation.

Acting as Norway legal counsel for JERA Nex in creation of JERA Nex bp and in advice in relation to the Norwegian offshore wind framework.

Advising Vårgrønn in connection with its acquisition of 20% in the UK wind farms DoggerBank A, B and C offshore wind projects from Eni. Advising Statkraft in connection with the Fosen wind farm project development.

Advising Acquila in the acquisition and project development of the Midtfjellet and Øyfjellet wind farms.

27

Editorial team

Per Aksel Hammer Krog

Johanna Wärnberg

Stig K. Engelhart

PARTNER

PARTNER

PARTNER

+47 90946904 peakr@bahr.no

+46 703183005 jwa@bahr.no

+47 47011112 skl@bahr.no

28

Tobias Bonde Frost

Peter Aall Simonsen

Morten P. Smørdal

PARTNER

PARTNER

PARTNER

+45 31608045 tfb@bahr.no

+47 92023789 pas@bahr.no

+47 92023789 pas@bahr.no

Sofus Larsen

Anne Sophie van Dijke

Natalie W. Mankowitz

SENIOR ASSOCIATE

ASSOCIATE

ASSOCIATE

+45 28940284 sofus@bahr.no

+47 97771015 annes@bahr.no

+46 702456702 natma@bahr.no

29

Notes

30

Offshore Wind in Scandinavia 2026 31

Disclaimer This publication is provided for general information purposes only and does not constitute legal advice. You should not rely upon it as a substitute for specific legal advice tailored to your particular circumstances. If you require legal advice on any matter addressed in this publication, please contact a BAHR partner.

BAHR accepts no responsibility for any information contained in this publication that may prove to be inaccurate, incomplete, outdated, or incorrect. BAHR excludes all liability (howsoever caused) to you or any third party for any loss or damage arising from the use of, or reliance upon, this publication. Any use of the information contained herein is entirely at your own risk.

bahr.no 32