The Dutch government announced no applications were submitted for the recent 1 GW Nederwiek I-A offshore wind tender in the North Sea. The tender closed on 30 October without bids, confirmed by the Netherlands Enterprise Agency (RVO).
In a letter to Parliament, Dutch Minister for Climate and Green Growth, Sophie Hermans, stated, “Today the tender for the Nederwiek I-A wind site has closed. No applications have been submitted. This confirms that government support is crucial to prevent offshore wind development from stalling.”
RVO opened the tender on 16 October and noted that criteria were adjusted to align with current market conditions. The plan was to award the 1 GW project through a comparative assessment, including financial and innovative criteria in ecology and circularity.
The minister highlighted significant market changes, noting that since 2018, offshore wind farms required no subsidies and developers even paid for permits. However, increased costs and slower industrial electrification make securing long-term power purchase agreements (PPAs) challenging, reducing investment willingness.
RVO cited rising costs and reduced electricity demand as factors making offshore wind less attractive. Similar challenges have occurred in Germany, Denmark, the UK, and Belgium.
Due to the lack of permit issuance, the Nederwiek I-A project will be delayed, potentially impacting the national offshore wind roadmap. The site was expected to be operational by 2030, and delays could increase costs for TenneT, the transmission system operator.
Hermans reiterated offshore wind’s importance for achieving the Netherlands’ energy and climate goals, despite setbacks.
To sustain progress, a new 2026 tender round is planned, with 2 GW of capacity available with subsidies. RVO confirmed EUR 948 million is reserved from the Climate Fund for upcoming permits, potentially including Nederwiek I-A.
Minister Hermans outlined additional measures for market support, including extending the Indirect Cost Compensation (IKC-ETS) scheme through 2028, preparing Contracts for Difference (CfDs), and establishing a PPA guarantee fund with Invest-NL. Future cabinet decisions will determine these instruments.
Original Story at www.offshorewind.biz