Wind Energy – The Netherlands
Multiple applications for largest wind farm sites on the Dutch North Sea.
In the largest tender round for offshore wind energy in the Netherlands to date several applications were admitted.
The Netherlands Enterprise Agency (RVO) has received several applications for both permits for the IJmuiden Ver Wind Farm Zone Sites Alpha and Beta (IJVWFZ Alpha and Beta). The IJVWFZ is located more than 60 km off the west coast of the Netherlands.
The two wind farms will produce renewable electricity and each have a capacity of at least 2 gigawatts (GW). A total of 4 GW will be licensed in one round, equal to 14% of the total current electricity needs in the Netherlands.
Vattenfall has decided to enter a bid for the sites, Alpha and Beta, of the 4 GW IJmuiden Ver offshore wind tender in the Netherlands.
Earlier, Dutch energy firm Eneco said it had reversed its decision to participate in the tender, as it said the business case had been eroded due to rising raw material costs, uncertainty over electricity prices and demand, high interest rates and supply chain problems.
Contribution to nature and integration into energy system
The wind farms are being built without subsidies. The tenders consist of a comparative test with a financial offer. With this the Dutch government wants to stimulate wind farms to contribute to nature of the North Sea and to the integration of the electricity generated into the Dutch energy system onshore. For both sites also additional criteria considering International Responsible Business Conduct (IRBC) and circularity apply.
Applications are also assessed on among others the certainty that the wind farm will be realised. Most points are awarded for criteria with a societal purpose (85 % of the total amount of points). With this the Ministry of Economic Affairs and Climate Policy aims to encourage solution-oriented and innovative bids.
Also the amount a company is willing to pay for being allowed to build and operate the wind farm earns points (15 % of the total number of points). It is not expected that parties will offer the maximum requested financial bid. A financial offer is included in the tenders to ensure sufficient variation between applications. The winner is the party with the most points.
Assessment of the applications
Interested companies and consortia could submit an application until 17.00 (CET) Thursday 28 March. RVO assesses the applications in collaboration with two expert committees. The winners of the IJVWFS Alpha and Beta tender round are expected to be known in June 2024. It is planned that both wind farms will produce electricity end of 2029/beginning of 2030.
Grid connection
Grid operator TenneT will install two platforms with two grid connections within the area (so-called ‘offshore sockets’) to connect the wind farms to the Dutch onshore electricity grid. These are the first offshore wind farms in the Netherlands with a direct current connection instead of an alternating current connection. Direct current makes transport over longer distances possible and has the advantage that there is less electricity loss during transport.
Ambitions
In 2022, the Government increased the target for offshore wind from 11 GW to approximately 21 GW around 2030/2031. Several areas have been designated for this. 21 GW is around 75% of current electricity needs in the Netherlands.
The Netherlands Enterprise Agency (RVO) organises the application procedure (tenders) for permits for the construction and operation of new offshore wind farms on behalf of the Ministry of Economic Affairs and Climate (EZK). A number of offshore wind farms are already in operation and there are also projects under construction and preparation.