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Hollandse Kust (zuid) Wind Farm Zone, Sites III and IV

22-03-2023

A permit and, if necessary, a subsidy have been made available for the development of Hollandse Kust (Zuid) Wind Farm Zone Sites III (350 MW) and IV (350 MW). To do this, the Netherlands Enterprise Agency has organised a tender procedure. Vattenfal was announced the winner of the tender on 10 July 2019.

Permits irrevocable

One party lodged a notice of objection with us relating to the decision to issue permits to Vattenfall. The party has now withdrawn their objection. As a result, the permits are irrevocable from 9 December 2019.

Tender

On 28 September 2018 the Minister of Economic Affairs and Climate Policy has informed the Dutch Parliament about the tender procedure for the offshore Hollandse Kust (zuid) Wind Farm Zone Sites III and IV (HKZWFS III and IV). Part of this procedure was the publication of a draft of the Ministerial Order for permitting offshore wind energy HKZWFS III and IV. A translation was provided and there was a consultation about this draft version.

On 10 July 2019, the Minister of Economic Affairs and Climate Policy announced that Vattenfall is the winner of the permit to construct and operate the wind farm at Sites III and IV of the Hollandse Kust (zuid) Wind Farm Zome.

Tender applicants

We received 5 applications for this tender (in alphabetical order):

Applicants

Parent company

Blue Champion C.V.Ørsted
Frontier C.V.Engie, Northland Power International (NPI), Energie de Portugal Renovaeis (EDPR), and Green Giraffe
NieuweWind ProjectCo B.V.Iberdrola and Green Investment Group (subsidiary of Macquarie)
Vattenfall Hollandse Kust Zuid 3&4 C.V.Vattenfall
WitWind II C.V.Shell, Van Oord en Eneco


All applications were assessed to ensure they fulfil the requirements in the Ministerial Order with respect to:

  • Technical feasibility
  • Economical feasibility
  • Financial feasibility
  • Planning (ability to construct the wind farm within 4 years)
  • Fulfil the requirements of the Wind Farm Site Decisions

All applications met these requirements. In the next step, a comparative assessment was conducted. Applications were assessed according to the following criteria:

a) The knowledge and experience of the parties involved
b) The quality of the design of the wind farm
c) The capacity of the wind farm
d) The social costs
e) The quality of the inventory and analysis of the risks
f) The quality of the measures to assure Cost Efficiency

For criteria e and f, which have the highest weighting, an independent expert commission advised us on the scoring. We took their advice. Criteria e and f can be divided into 3 categories:

  • Risk on the electricity prices and the value of the Guarantees of Origin
  • Risk during construction
  • Risk during the operational period of the wind farm

The composition of the expert commission was:

  • Ir. Diederik Samsom (chairman)
  • Drs. Albert Jochems
  • Dr. Sander Lensink
  • Prof. dr. Machiel Mulder
  • Drs. Bert den Ouden
  • MSc Ilse van Veghel
  • Mr. Kasper Walet

Publication of tender regulation

In March 2019, we organised a tender procedure for parties interested in obtaining the permits for the development of Hollandse Kust (zuid) Wind Farm Zone Sites III (350 MW) and IV (350 MW).

The Ministerial Order for permitting offshore wind energy

The Ministry of Economic Affairs and Climate Policy published the Ministerial Order for permitting offshore wind energy on 3 December 2018 in the Government Gazette. The publication of this order is in Dutch. An English translation is available. The translation is an unofficial document: it is only provided for convenience, rights do not apply.

Central Government Real Estate Agency

Approximately 70% of both Wind Farm Sites Hollandse Kust (zuid) III & IV are located within the 12 miles zone of the Dutch territories. This means a seabed lease has to be established between the wind farm operator and The Central Government Real Estate Agency. Apart from the seabed lease for the wind turbines, a rental agreement for the infield cabling between the wind turbines and the TenneT platform has to be signed. An English translation of the Seabed Lease, Rental Agreement, General Terms and Conditions can be found below.

From November 13th until November 23rd 2018 17:00 hours CET there was a consultation about draft versions.

Right to the seabed lease

The Central Government Real Estate Agency has calculated the cost for the right to the seabed lease at these sites, based on a rate of € 0.98 per MWh every year, using a fixed total capacity of 350 MW and 4,000 full load hours. The payment is fixed and independent of the final actual installed capacity or output from the wind farms and is only required for the part of the wind farm within the 12 miles zone. For Site III this is 70.94% and for Site IV it is 68.02%. The amounts for the first year of operation have therefore been fixed at:

  • Site III: € 973,296.80/year
  • Site IV: € 933,234.40/year

These annual payments will be required 4 years after the permits have become irrevocable and will be indexed for the period of operation.

Reservation fee

From the moment the permits are given to the winner up to the moment of the payment of the right of superficies seabed lease, a fee of € 650/MW/year has to be paid for the part of the site within the 12 miles zone (Site III 70.94% and Site IV 68.02%). This translates to:

  • Site III: € 161,388.50/year
  • Site IV: € 154,745.50/year

These payments (indexed) will also be required for the period from when the wind farm ceases operation until it has been fully decommissioned and removed.

Rental price cables

The rental price for the infield cables is fixed at a one-off amount of € 3.17 per m2 impacted corridor. The width of the impacted corridor is fixed at 0.3 m. For Site III, the impacted part is calculated as a total cable length of 60 km, whilst for Site IV the calculated length is 70 km. For the part of the site within the 12 miles zone (Site III 70.94% and Site IV 68.02%) the rental price for the cables and pipes have therefore been fixed at:

  • Site III: € 40,478.36 (one-off payment)
  • Site IV: € 45,280.91 (one-off payment)

The final documents with all the requirements have been published on 22 January 2019.

Sites

The Project and Site Description (PSD) was designed to help any party with an interest in participating in the planned permit tender for Hollandse Kust Zuid Wind Farm Sites III and IV (HKZWFS III and IV). The document describes the site, surroundings and characteristics of HKZWFS III and IV.

The magazine Hollandse Kust, where wind and water works shows what the region has to offer for offshore wind energy.

Wind Farm Site Decisions

The final Wind Farm Site Decisions for Hollandse Kust (zuid) Wind Farm Sites III and IV were published in the Government Gazette on Friday, 19 January 2018. The term for inspection for these Wind Farm Site Decisions ran between 19 January 2018 and 2 March 2018.

The Council of State has received appeals. A hearing from the Council of State was held on the 15th of February 2019. On 17 April 2019, the Council of State ruled on the appeals against the Wind Farm Decisions (publication available in Dutch only). The Wind Farm Site Decisions Hollandse Kust (zuid) Sites III and Sites IV are irrevocable per this date.

Wind energy yield calculation

When creating a wind report you will have to take into account:

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