RVO: Developers Ready to Build and Operate OWFs Subsidy-Free

Businesses are prepared to start constructing and operating the Hollandse Kust Zuid I & II without government subsidy, the Netherlands Enterprise Agency (RVO) said after the application period for subsidy-free bids closed yesterday, 21 December.

Image source: PSD document/ RVO.nl
Image source: PSD document/ RVO.nl

To remind, the tender has been set up in a way that it primarily receives zero-subsidy offers with companies competing only for a concession permit. If there had not been any applications or if developers had filed non-qualifying ones, the tender would have been bound for a second round that would be subsidy-based.

RVO stated that the fact that developers are competing for non-subsidised projects means that an offshore wind farm will be built without any subsidy.

Minister of Economic Affairs and Climate Policy Eric Wiebes said: “This is wonderful news for the energy transition process. If these applications do indeed result in an offshore wind farm being constructed without any subsidy, it will be a huge breakthrough. This development also shows that we can keep down the costs for the energy transition if we address these issues intelligently and if the market and government work well together.”

Developers who informed about placing offers at this tender are Vattenfall and Statoil.

Ørsted, former DONG Energy, was also anticipated to file a bid, since it is one of the two developers that offered to build and operate two of its German offshore wind farms at the latest tender in the country. Also, the company recently invited tenders for inter-array cable installation and rock dumping services at both the Borssele I & II and Hollandse Kust Zuid I & II sites, which was perceived as a hint of an upcoming participation in the tender. However, Ørsted’s Jasper Vis later told Offshore WIND that the final decision on bidding for Hollandse Kust Zuid I & II had not yet been made at that time.

So far, there is no information whether the offshore wind giant placed its bid at this tender.

The Dutch government will assess the submitted applications over the next few months and the developer with the best proposal will be declared the winner. The government is expected to announce the winner in March 2018.

Offshore WIND Staff