Businesses prepared to construct offshore wind farm without a subsidy
Businesses are prepared to start constructing and operating the Hollandse Kust (zuid) Wind Farm Sites I and II without any contribution from the government. This situation means that an offshore wind farm will be built without any subsidy. Market players had until today to submit their applications for a permit to the Ministry of Economic Affairs and Climate Policy. The applications submitted will be assessed over the next few months and the party with the best proposal will be declared the winner. As from 2022, the Dutch wind farm in the North Sea will have to start supplying one million households with sustainably produced electricity.
Minister of Economic Affairs and Climate Policy Wiebes commented: “This is wonderful news for the energy transition process. If these applications do indeed result in an offshore wind farm being constructed without any subsidy, it will be a huge breakthrough. This development also shows that we can keep down the costs for the energy transition if we address these issues intelligently and if the market and government work well together.”
Selecting the winner
The cost price for offshore wind energy has fallen spectacularly in recent years, partly thanks to the Dutch approach. As a result, in consultation with market players, the decision was made to open an unsubsidised procedure for Hollandse Kust (zuid) Wind Farm Sites I and II. In the event that there are several feasible applications, the party with the best proposal will be declared the winner. The main criteria are the timely construction of the wind farm, the quantity of energy produced and sound risk management. The winner will receive a permit for a 30-year period for Hollandse Kust (zuid) Wind Farm Sites I and II. The wind farm will have capacity of about 700 MW and must be ready by 2022.
Until 2023, the Netherlands will be working hard on the construction of five wind farms which, with the already existing offshore windfarms have a total capacity of over 4,500 MW, will be among the largest in the world. Orsted won the permit for Borssele Wind Farm Sites I and II in 2016, while Sites III and IV were won by a consortium comprising Eneco, Diamond Generation Europe, Shell and Van Oord in 2016. We will be able to achieve much with these large offshore wind farms. Sufficient power will be generated to supply one million households with sustainably produced electricity. At the same time, the pressure is on providers of alternative green energy technologies to bring down their prices quickly as well.
The next tender procedure will be running between 2 and 18 January inclusive, intended for the development of Borssele Wind Farm Site V. On this site, innovation and testing new technology take centre stage.