Splash247: Developers shun Dutch 1GW offshore wind auction

The Dutch authorities have received no bids for its 1GW Nederwiek 1-A offshore wind site in the North Sea.

The site, which covers an area of around 150 sq km, some 95 km off the coast of Texel, was already reduced from 2GW to decrease the investment required and the financial risks to developers.

Regardless, the RVO, otherwise known as the Netherlands Enterprise Agency, did not receive any bids for the site by the set deadline.

However, the agency stated that it was not surprised by this since the Ministry of Climate Policy and Green Growth believed “that there might not be any applications”.

This was attributed to rising costs and less demand for electricity. The authorities will go ahead with a new tender round next year, in which 2 GW of capacity will be awarded with subsidies.

RVO said that €948m ($1.09bn) has already been set aside from the Climate Fund for the new permit round.

“The sustainability of the Dutch industry, among others, is lagging. This has made it more difficult for wind farm developers to conclude long-term electricity contracts before the construction of a wind farm starts. This has reduced their willingness to invest,” the agency stated.