Netherlands

Netherlands

Vattenfall wins second subsidy-free Dutch tender

Vattenfall has won the rights to build the subsidy-free 760MW Hollandse Kust Zuid III & IV site off the coast of the Netherlands.

Vattenfall, through its Dutch subsidiary Nuon, built Egmond aan Zee, the Netherland's first offshore wind project
Vattenfall, through its Dutch subsidiary Nuon, built Egmond aan Zee, the Netherland's first offshore wind project

The project — the second zero-subsidy Dutch offshore wind farm it has been awarded — is due to be completed in 2023.

Vattenfall must pay about €2 million annually to lease the site, the Dutch ministry of economic affairs and climate stated.

The site is located east of the Hollandse Kust Zuid I & II project, which the Swedish developer will also build and operate without subsidy after it won the competitive tender in March 2018.

Other bidders for Hollandse Kust Zuid III & IV were a consortium of Shell, Eneco and Van Oord, a grouping of Engie, Green Giraffe and Meewind, and Danish developer Ørsted, according to the Netherlands Wind Energy Association.

Vattenfall will now work on the final preparations for the project, having already chosen Siemens Gamesa to supply the turbines, Sif the foundations, and Prysmian the cables.

Seaway Heavy Lift will install the cables and foundations before Swire Blue Ocean installs the turbines, it added.

Construction is planned for 2022, Vattenfall stated.

WindEurope CEO Giles Dickson said the auction highlighted the competitiveness of offshore wind.

"The ‘zero subsidy’ system seems to work in the Netherlands, because the Dutch share a lot of the project risk, and it’s not hard for wind farms to find corporate buyers for the power they produce.

"But in most European countries offshore wind auctions need to offer stable revenues. This reduces the financing and therefore the total societal costs," Dickson said. 

He also praised the offshore wind sector in the Netherlands. There is currently just over 1.1GW installed in Dutch waters, but the government has set targets for the country to have 4.5GW of offshore wind operating by 2023, and 11.5GW by 2030.

"The Dutch are doing well on offshore wind. They provide clear visibility of what they’re auctioning and when, which helps reduce costs.

"They’re taking a strategic approach to grid investments — and a healthy long-term view of marine spatial planning aiming at happy co-existence between offshore wind and, for example, fishing and biodiversity," Dickson added.

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