'Offshore wind could grind to a halt': Dutch rush back subsidies and eye CfDs
Netherlands puts €1bn of support on table next year and prepares bill to introduce contracts for difference
The Dutch government said subsidies for offshore wind are back on the table as it confirmed it is looking to offer contracts for difference (CfD) support in future allocations.
The Netherlands’ climate and green growth minister Hermans announced €1bn ($1.2bn) from the country’s climate fund to support 2GW of development in 2026, as she warned “the rollout of wind farms is at risk of grinding to a halt”.
A government statement said: “The cabinet is preparing a bill to enable CfDs: wind farm owners would receive subsidies when revenues are low and pay contributions to the State when electricity prices are high. The action plan also outlines the development of a guarantee fund to support the conclusion of long-term electricity contracts, and explores whether wind farm builders can be given more time for completion.”
The flagging of two-sided CfDs – favoured by nations such as the UK and widely admired by the industry – came as the Netherlands published an Offshore Wind Energy Action Plan that includes the 2026 subsidies.
The government will also extend by a year a scheme to support industrial electricity users, which it said would help the business case for offshore wind power.
Hermans said: “In various parts of the world and in Europe, the sector is struggling with rising costs, rising interest rates, and uncertainty about sufficient demand. This means that the pace of offshore wind farm rollout is slower than in recent years. Without intervention, the rollout of wind farms is at risk of grinding to a halt.”
The Netherlands was among the first European nations to launch zero-subsidy tenders in 2017 after previously offering support for its first wave of wind farms.
Dutch wind energy body NedZero said the move is positive: “NedZero is pleased with the government's support for offshore wind and the new Action Agenda for Industrial Electrification. This package provides support to continue projects and reduce capital costs. We look forward to the new government's measures to ensure a balanced growth of supply and demand for green energy.”
The Netherlands faces a general election later in the autumn, meaning the energy policy landscape could change again depending on the outcome and the composition of the next parliament.
(Copyright)