Latest News

Dutch consider new subsidies for offshore Wind as bidders opt-out

Dutch consider new subsidies for offshore Wind as bidders opt-out

The Dutch government wants to introduce subsidies into its offshore wind farm tenders, because bidders have withdrawn from the current "zero-subsidy" model.

Since 2017, the Netherlands has been able to attract builders to its offshore wind farms, without subsidizing electricity prices. However, interest has decreased due to increasing construction costs and uncertain power prices.

The Dutch Climate Ministry said that interest in the upcoming auction for three sites on the North Sea was "very low".

Eneco, Orsted and other energy firms have already announced that they will not participate in the September tender because they do not see a viable business case for them without subsidies.

Pieter ten Bruggencate, the ministry's spokesperson, said that the absence of bidders was a "real difference" from the previous three years.

We are constantly looking for new ways to provide bidders with more comfort and security.

He said that any changes to the tender for the three 1-gigawatt sites would be relatively minor, without providing further details.

The government will also look at "contracts of difference" in the long term. These contracts offer companies a subsidy when the electricity price is low, while the government gains when the prices are high.

Ten Bruggencate suggested that other forms of price guarantee could be considered.

Sophie Hermans, the climate minister, is expected to release detailed plans in mid-April.

The Netherlands pushed back their plans last year to increase capacity by 4.7 GW instead of 21 GW, citing cost, supply-chain difficulties, and "challenges with timely decision making". (Reporting and editing by Bart Meijer)

(source: Reuters)