Netherlands Awards 4GW of Offshore Wind Capacity Amidst Challenging Conditions

The Netherlands has successfully completed its largest offshore wind tender to date, awarding permits for two 2 GW projects in the Ijmuiden Ver zone.

Two international consortia, Zeevonk II and Noordzeker, emerged as winners, marking a significant step in the country’s energy transition despite complex market conditions.

Zeevonk II, a collaboration between Swedish company Vattenfall and CIP (Copenhagen Infrastructure Partners), secured the Beta site, with a focus on system integration, including an electrolysis plant at the port of Rotterdam.

Noordzeker, comprising Dutch pension funds ABP and APG along with British firm SSE Renewables, won the Alpha site, emphasizing North Sea nature protection. Both consortia submitted bids without subsidies, offering annual financial contributions for the permits.

Zeevonk II proposed €20 million annually for 40 years, while Noordzeker offered over €1 million per year for the same duration.

The awarded projects incorporate innovative measures to minimize environmental impact. Noordzeker plans to install artificial reefs around wind turbines and deploy bird-friendly turbine designs. Zeevonk II will construct a 1 GW hydrogen production plant at Maasvlakte, further bolstering the Netherlands’ green infrastructure.

These projects contribute to the Netherlands’ target of achieving at least 10 GW of offshore wind capacity by 2030.

The next tender, scheduled for the third quarter of 2025, will also involve two 2 GW sites with financial bids.

However, delays in five offshore wind projects have pushed the 21 GW target to 2032, primarily due to strains in the wind farm supply chain, particularly for offshore transmission connections.

While the cost of electrolytic hydrogen production in Europe remains high, offshore wind energy capture prices in Germany, a close proxy for Dutch prices, have decreased significantly in 2023 compared to 2022’s record highs.

The energy generated by these new projects is expected to stabilize electricity market prices and promote the transition to sustainable sources. The Dutch electricity market for 2030 delivery settled at €65.36/MWh, reflecting a downward trend from previous levels.

The Netherlands continues to lead in offshore wind development, navigating increasingly complex market conditions and logistical challenges. Upcoming projects and tender awards will be crucial in achieving the country’s energy goals and ensuring a successful transition to a green economy.

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