No bids submitted in 1 GW Dutch offshore wind auction

The Dutch government has announced that no applications were received for the recent offshore wind tender for the 1 GW Nederwiek I-A site in the North Sea, which closed on 30 October, according to the Netherlands Enterprise Agency (RVO). In a letter to Parliament, Dutch Minister for Climate and Green Growth, Sophie Hermans, stated that the lack of submissions shows the market now relies heavily on government support to prevent delays in offshore wind development.

RVO opened the tender on 16 October, modifying the criteria to align with current market conditions to attract bids. The 1 GW project was to be awarded based on a comparative assessment with financial proposals and additional criteria aimed at promoting innovation in ecology, circularity, and system integration.

The minister noted that the offshore wind market has changed drastically in recent years. While projects could proceed without subsidies since 2018, developers now face rising costs and slower industrial electrification, making long-term power purchase agreements (PPAs) harder to secure and dampening investment interest.

RVO highlighted that increasing costs, challenging contract terms, and decreased electricity demand have diminished the appeal of offshore wind for developers. Similar issues have also been observed in tenders across other European countries like Germany, Denmark, the UK, and Belgium.

Due to the absence of granted permits, the Nederwiek I-A wind farm’s development will be postponed, necessitating a repeat of the tender. The minister warned this could impact the national offshore wind roadmap, which anticipated the site’s operation by 2030, and may incur additional costs for the transmission system operator (TSO) TenneT. However, she emphasized that the overall effects depend on future policy decisions and funding levels.

Despite this setback, Hermans reiterated the importance of offshore wind in achieving the Netherlands' energy and climate objectives. She stated in her letter that offshore wind energy is vital for the country’s energy independence and for ensuring a sustainable energy system.

To sustain progress, the government plans a new tender round in 2026 to allocate 2 GW of capacity with subsidies. RVO confirmed a permit round with subsidies will take place, with EUR 948 million allocated from the Climate Fund. The minister indicated that Parliament would be updated by January 2026 on which sites, including possibly Nederwiek I-A, will be included.

Additionally, Minister Hermans outlined other supportive measures for the market: extending the Indirect Cost Compensation (IKC-ETS) scheme through 2028 to reduce electricity costs for industry, preparing Contracts for Difference (CfDs) for renewable energy, and establishing a PPA guarantee fund with Invest-NL. These initiatives aim to enhance both the supply and demand for green electricity and restore investment confidence, with decisions on these measures to be made by the next cabinet.