Dutch Government opens second subsidy-free 700 MW offshore wind farm tender round

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Hollandse kust
Gepubliceerd op: 6 December 2018 | Gewijzigd op: 06 December 2018

The Dutch Ministry of Economic Affairs and Climate Policy is opening another tender procedure for bids to build and operate an offshore wind farm in the North Sea without subsidy. This tender is for Sites III and IV of the Hollandse Kust (zuid) Wind Farm Zone.

The windfarm will have a combined capacity of around 700 MW. When fully operational, the two sites will generate enough sustainable electricity to power about one million Dutch households.

The cost of offshore wind power has fallen spectacularly in recent years, in part thanks to the Dutch approach. That is why, in consultation with interested parties, a decision was made to open a subsidy-free procedure for Hollandse Kust (zuid) Wind Farm Sites III and IV (HKZWFS III and IV) as well.

This procedure is similar to the one used for HKZWFS I and II. The only difference is that parts of HKZWFS III and IV are located within the '12-nautical mile zone', where the Dutch state owns the seabed.

Right to the seabed lease

The fee has been calculated based on a fixed rate of € 0.98 per MWh per year, using a fixed total capacity of 350 MW and 4,000 full load hours. Whilst the fee will be subject to indexation, it is fixed and independent of the final actual installed capacity or output from the wind farms. Moreover, it is only required for the part of the wind farm within the 12 miles zone. For Site III this is 71.85% and for Site IV it is 68.23%. EU legislation on state aid requires this fee to be in line with market conditions.

The superficies agreement, containing the terms and conditions for acquiring the right of superficies, will be published in mid-December.

Submitting applications

Interested parties may submit their applications to RVO.nl between 1 March, 2019 and 17:00 on 14 March, 2019. This is the second time the Ministry of Economic Affairs and Climate Policy has opened a procedure to enable an offshore wind farm to be built and operated without subsidy.

In 2018, Nuon/Vattenvall was awarded the permit to start building and operating a wind farm at HKZWFS I and II. Due to be operational in 2023, it will become the first offshore wind farm in the world to be built without subsidy.

Until 2030, construction on new offshore wind farms in the Netherlands will be in full swing. Together with the country's existing offshore wind farms, they will take The Dutch cumulative installed offshore capacity to over 11,500 MW, ranking the country's industry among the largest in the world. All of these new wind farms are being connected to the electricity grid by TenneT.

With these large offshore wind farms, the Netherlands is making a substantial contribution to the energy transition. They have sufficient capacity to supply millions of households with sustainably generated electricity. At the same time, other green-power technologies are also under pressure to become more affordable in the short term.

More information?

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

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