The fact that Eneco is leaving the bidding war is a setback for the cabinet. It wants to invest heavily in offshore wind energy to green the electricity supply. It must be completely CO2-free by 2035.
To achieve this, the government wants to have more than 20 gigawatts of offshore wind by around 2030. The new IJmuiden Ver park should take a big step in that direction with the currently planned 4 gigawatts.
About the author
Bard van de Weijer is economics editor of de Volkskrant. He writes about the energy transition and its impact on daily life.
According to Eneco CEO As Tempelman, financing a wind farm is now much more expensive due to inflation and high interest rates. Materials, labor and construction ships have also become much more expensive. Furthermore, Eneco sees that the demand for offshore turbines worldwide has grown so strongly that suppliers can no longer guarantee that parks will be completed on time. If construction is delayed, operators can face huge fines.
More than a year
Eneco has been working on the plans with its Norwegian partner Equinor for more than a year. This concerns IJmuiden Ver Alpha and Beta, which will be located in two parts more than 60 kilometers off the coast of North Holland. At 4 gigawatts, this will be the largest Dutch offshore wind farm to date. That is almost as much power as all current offshore wind farms combined. The plots currently on offer should supply electricity to both factories and households by the end of the decade.
Energy companies can register for the two lots of 2 gigawatts each until this afternoon. Eneco, together with partners, already operates the Prinses Amalia, Luchterduinen, Borssele III & IV and Hollandse Kust Noord wind farms. It is building a fifth park, Hollandse Kust West, with Shell.
Jan Vos, the chairman of the Dutch Wind and Energy Association (NWEA), agrees with Eneco’s arguments. The trade association of the wind sector mainly has problems with the fact that the Dutch government, with IJmuiden Ver, also asks money from wind companies that want to operate a plot. “That could amount to 33 billion euros for this tender,” he says.
Financial contribution
Until now, when allocating a plot, non-financial matters were taken into account, such as the competitor’s ecological approach or better integration of wind farms with the overloaded power grid. Vos: ‘The Netherlands never said, as happened abroad: just make as much money as possible.’
In recent years, offshore wind energy has rapidly become more profitable, meaning that Vattenfall’s newest wind farm could be completed last year without subsidy. The government is now asking for a financial contribution from energy companies for the right to build wind turbines.
The Ministry of Economic Affairs recognizes the problems the sector is facing. Nevertheless, it believes that other parties will make a bid for both lots today.
Tags: Eneco withdrawing construction largest Dutch offshore wind farm risks great
