Netherlands

Netherlands

Netherlands offers Zuid-Holland at zero-subsidy

NETHERLANDS: The Dutch minister for economic affairs said the license for the Zuid Holland 1 wind projects will be offered to any developer wanting to make a zero-subsidy bid, before starting the auction process.

The Zuid Holland zone (lower blue area) will be offered at zero-subsidy
The Zuid Holland zone (lower blue area) will be offered at zero-subsidy

In a letter to the Dutch parliament, Henk Kamp said the recent tender in Germany where three of the four projects auctioned were awarded without subsidy shows that it was possible.

Kamp said while many experts where undecided whether the next round of Dutch offshore project could be built without subsidy, the prospect could not be ruled out.

So, the two 350MW sites in the zone will be offered to developers who wish to make a bid to build the projects without subsidies.

If this is unsuccessful, the traditional subsidy auction process will take place.

Kemp noted the German subsidy-free projects were due to be installed in mid-2020s, which is later than Zuid Holland 1 – expected online by 2021 – meaning they could use more advanced technology, and the German sites expect better wind resources.

The first Dutch offshore wind auctions in last year stunned the industry. The Borssele I and II sites were won by Dong Energy for €72.70/MWh in early July 2016, followed by a Shell-led consortium winning the Borssele III and IV sites at €54.50/MWh.

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