Netherlands nixes offshore wind farm tenders over bad market conditions

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.