The Dutch government has decided to grant around €1bn ($1.19bn) in subsidies for the construction of 2GW of offshore wind farms.
In May, the country decided to delay tenders for two offshore wind farms over deteriorating market conditions for offshore wind energy projects. The two sites were not removed completely and will be tendered later.
The tenders for IJmuiden Ver Gamma-A and Gamma-B offshore wind sites were originally planned for September.
The delay happened after developers like Eneco and Ørsted stated that they would not apply to the tender without subsidies. The government then announced that it was looking to reintroduce subsidies for offshore wind tenders to attract more potential bidders.
The Netherlands last year already pushed back plans to increase offshore wind capacity from 4.7 GW to 21 GW to the end of 2032 instead of 2030, citing costs and supply chain difficulties.
Rising costs and uncertainty are halting the construction of new offshore wind farms in many countries. To prevent this in the Netherlands, the government is allocating nearly €1bn ($1.19bn) from the Climate Fund to support the construction of 2GW of new offshore wind farms in 2026. The country currently has 4.7GW of offshore wind farms in operation.
“Without intervention, the rollout of wind farms is at risk of grinding to a halt. The Offshore Wind Energy Action Plan offers additional support for the sector in the coming period and details several additional measures,” said Deputy Prime Minister and Minister of Climate Policy and Green Growth, Sophie Hermans.
In the short term, the government is also extending the indirect cost compensation scheme for the industry by one year, until 2028, to make electricity costs competitive. Around €150m ($177m) has been made available for this purpose.
In the longer term, the cabinet is preparing a bill to enable contracts for difference. The action plan also outlines the development of a guarantee fund to support the conclusion of long-term electricity contracts.
The government is also investigating whether the future Ten Noorden van de Waddeneilanden wind farm can be incorporated into the Doordewind wind energy zone, which would lead to higher revenues per turbine and better utilisation of infrastructure.
