Netherlands Looks Into Reintroducing OW Subsidies to Encourage Bidders
March 31, 2025
The Dutch government is looking to reintroduce subsidies in its tenders for offshore wind farms, as prospective bidders are backing out of the current "zero subsidy" model.
The Netherlands has managed to attract builders for its offshore wind farms without offering subsidies on electricity prices since 2017, but interest has waned due to rising construction costs and uncertainty over power prices.
Interest for the upcoming tender for three sites in the North Sea is "very low", the Dutch climate ministry said on Monday.
Energy firms Eneco and Orsted have already said they will not join the tender in September, as they see no viable business case without subsidies.
"It is a real difference with the situation of the past three years and gives enough reason for us to see if we can make changes," ministry spokesperson Pieter ten Bruggencate said about the lack of potential bidders.
"Market circumstances have changed significantly, we are looking for ways to offer bidders more comfort and security."
Any changes for the upcoming tender for the three 1-gigawatt (GW) sites will remain relatively small, he said without giving further details.
For the longer term, the government is looking at so-called "contracts for difference", which offer a subsidy to companies when electricity prices are low while the government benefits when prices are high.
Other forms of price guarantees could also be considered, Ten Bruggencate said.
Climate minister Sophie Hermans is expected to present detailed plans by mid-April.
The Netherlands last year pushed back plans to increase capacity from 4.7 GW to 21 GW to the end of 2032 instead of 2030, citing costs, supply chain difficulties and "challenges in timely decision-making".
(Reuters - Reporting by Bart Meijer; Editing by Vijay Kishore)
