The Netherlands: Future Tenders Not Guaranteed to Follow Subsidy-Free Suit

The outcome of the first subsidy-free offshore wind tender set up in the Netherlands gives confidence for future tenders in the country, however, there is no guarantee that these can also be realised without a subsidy, according to Eric Wiebes, the country’s Minister of Economic Affairs and Climate.

In his letter to the House of Representatives on the outcome of the third offshore wind tender, Eric Wiebes stated that cost factors and market conditions that are favourable now may change. Wiebes further added that this is why he had started a process to adapt the country’s Offshore Wind Energy Act so it could respond even better to the development of offshore wind costs and market conditions. The minister expects to submit the bill to the House of Representatives before the summer break.

The fourth offshore wind tender in the Netherlands, the one for Hollandse Kust Zuid III & IV sites, is scheduled to take place at the end of this year. Minister Wiebes stated that the upcoming tender will be designed based on the results of the evaluation of the first subsidy-free tender. The decision on the procedure of the fourth tender will be made shortly after the summer.

Including the latest tender, more than 60% of the total of 3,450MW from the Energy Agreement has been allocated, accounting for clean electricity supply for approximately 3 million households, according to the minister’s letter.

To remind, the tender for the Hollandse Kust Zuid I & II sites has been won by Vattenfall. Other bidders that competed for the rights to build up to 750MW of offshore wind across the two sites include: Statoil, innogy, and a consortium comprising Van Oord, Eneco and Diamond Generating Europe (a subsidiary of Mitsubishi Corporation).

Offshore WIND Staff

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