Netherlands nixes offshore wind farm tenders over bad market conditions

Netherlands

Update

The Dutch government has decided to delay tenders for two offshore wind farms over deteriorating market conditions for offshore wind energy projects.

The tenders for IJmuiden Ver Gamma-A and Gamma-B offshore wind sites were originally planned for September. The two wind farms have a capacity of 1GW each.

The government stated that the removal of the two areas was also partly due to a lack of large-scale demand for electricity. According to the Dutch authorities, the two sites were not removed completely but will rather be tendered at a later date.

Instead, the government opted to open a tender in October for just one location in the North Sea – Nederwiek I-A – with a capacity of 1GW. However, the size was reduced from 2GW.

The Dutch Climate Ministry claimed earlier this year that interest in the three sites was very low since developers like Eneco and Ørsted stated that they would not apply to the tender without subsidies.

Due to this, the Netherlands claimed it was looking into ways to reintroduce subsidies in its tenders for offshore wind farms, which would attract more potential bidders.

The Dutch government said in a statement that it was working on an action plan for offshore wind energy that can improve the investment climate for offshore wind.

For the period from 2027 onwards, financial support instruments will also be considered, such as a minimum and maximum price guarantee.

Source: Splash247.com

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.