'Drastic' measure taken to aid iconic Dutch offshore wind project
Next Netherlands offshore wind tender had already been cut from 2GW to 1GW
The Dutch government has taken the “drastic step” of amending terms for the 2GW IJmuiden Ver Beta offshore wind farm after assessing the impacts of delays in building the Delta Rhine Corridor hydrogen pipeline.
Vattenfall and Copenhagen Infrastructure Partners won the rights to develop the 2GW wind farm last year, in a proposal that included commitments to build a 1GW electrolyser and a 50MW offshore solar array.
The IJmuiden Ver Beta project was originally due for full completion by the end of 2029, but the Dutch government announced on Thursday that it is no longer financially feasible under its original terms since the Delta Rhine pipeline has been postponed until 2032.
The changed terms mean parts of the project have been scaled down, and the construction schedule for offshore wind capacity has been switched to two phases.
Under revised consent terms, only 1GW of offshore wind capacity will be delivered in 2029, the timeline for the second 1GW has shifted to 2032, when the hydrogen pipeline is expected to be completed.
Electrolyser capacity was reduced from a commitment of 1GW to at least 500MW, delivery from 2033, and the offshore floating wind project commitment was also scaled back.
The financial bid was reduced from €800m ($931m) to €400m, with more of the payments deferred, and for longer.
Issues relating to late delivery of infrastructure for green hydrogen were among the factors that were cited when the Netherlands slashed its offshore wind target by up to 20GW in July, citing saturated demand for green power among factors behind this decision.
Climate minister Sophie Hermans said the Netherlands will now aim for between 30-40GW by 2040.
It was Hermans who informed the Dutch cabinet of this week's decision on IJmuiden Ver Beta on Thursday.
The Delta Rhine Corridor pipeline is intended to ship green hydrogen from a location in Maasvlakte to customers in the Netherlands, Belgium and Germany.
Additionally, the Dutch government said it would continue to discuss “appropriate grid tariffs”.
The measures received a guarded welcome from industry representatives.
The NedZero Wind Energy Association expressed “understanding” for the measure taken by the Dutch government.
“Changing a permit that has been granted is a drastic step, which has rightly been taken with care,” the association stated.
“The energy transition is taking place in a complex force field in which infrastructure, market conditions and technology influence each other at a rapid pace. This case underlines how vulnerable our projects can be to external factors.”
NedZero urged the authorities to learn lessons from such events and “to make future tenders more robust, predictable and resilient”.
The government acknowledged that this phasing would have “financial consequences” for grid operator TenneT, which has contracts in place for a 21GW offshore wind roadmap and will have to negotiate agreements for delayed capacity.
These additional costs may be recovered through network tariffs, if approved by electricity market regulator ACM.
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