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The Dutch government has awarded Vattenfall tenders to develop two offshore wind farms in Kust Zuid, both with a single capacity of 350MW.
According to the plan, the two offshore wind farms, which will be completed in 2022, will be the world's first offshore wind project without public subsidies and is expected to provide clean electricity
to up to 1.
5 million households.
The cost of offshore wind in Europe has fallen
significantly in recent years as manufacturers bring larger turbines to market.
Zero subsidies means that wind farms will sell electricity in the wholesale electricity market, rather than relying on income stabilization schemes (such as differential contracts) to lock in a fixed income
.
Last year, Germany also released its first zero-subsidy offshore wind tender scheme, seen as a milestone
for the industry.
The German tender is the first project in the world to attract zero-subsidy bidding, but the projects involved will come on stream in 2024-25, later than the Kust Zuid offshore wind farm
in the Netherlands.
After Germany, the Dutch government also accepted offers from developers who were ready to submit zero-subsidy bids
.
The Dutch government has taken on some of the risks involved in offshore wind projects, such as the cost of
grid connections.
Giles Dickson, CEO of WindEurope, said: "This news shows that some developers in certain markets may bid with zero subsidies, especially as
the government assumes and manages the risk share of the project.
In this context, grid connectivity, which the Dutch government is concerned about, is an important factor
.
In addition, the Dutch government has successfully mitigated the risks
associated with offshore wind by having a clear understanding of the future market size.
Not only that, Giles Dickson further adds, "Wind energy has shown time and time again that it can deliver more capacity
with less cash.
This is the key message
that other governments should take from it.
”
The Dutch government has awarded Vattenfall tenders to develop two offshore wind farms in Kust Zuid, both with a single capacity of 350MW.
According to the plan, the two offshore wind farms, which will be completed in 2022, will be the world's first offshore wind project without public subsidies and is expected to provide clean electricity
to up to 1.
5 million households.
The cost of offshore wind in Europe has fallen
significantly in recent years as manufacturers bring larger turbines to market.
Zero subsidies means that wind farms will sell electricity in the wholesale electricity market, rather than relying on income stabilization schemes (such as differential contracts) to lock in a fixed income
.
Last year, Germany also released its first zero-subsidy offshore wind tender scheme, seen as a milestone
for the industry.
The German tender is the first project in the world to attract zero-subsidy bidding, but the projects involved will come on stream in 2024-25, later than the Kust Zuid offshore wind farm
in the Netherlands.
After Germany, the Dutch government also accepted offers from developers who were ready to submit zero-subsidy bids
.
The Dutch government has taken on some of the risks involved in offshore wind projects, such as the cost of
grid connections.
Giles Dickson, CEO of WindEurope, said: "This news shows that some developers in certain markets may bid with zero subsidies, especially as
the government assumes and manages the risk share of the project.
In this context, grid connectivity, which the Dutch government is concerned about, is an important factor
.
In addition, the Dutch government has successfully mitigated the risks
associated with offshore wind by having a clear understanding of the future market size.
Not only that, Giles Dickson further adds, "Wind energy has shown time and time again that it can deliver more capacity
with less cash.
This is the key message
that other governments should take from it.
”
