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Lobby group aims for zero-subsidy bids in Netherlands auctions

Thu 12 Oct 2017 by Jamey Bergman

Lobby group aims for zero-subsidy bids in Netherlands auctions
Shell and others are lobbying the Netherlands’ government to amend the tender system to include zero-subsidy bids

Following the steep cost declines in recent offshore wind auctions in Denmark and the UK and successful zero-subsidy bids in Germany, the Netherlands Wind Energy Association (NWEA) said it is pushing its government to make zero-subsidy bids a reality.

Final documentation for the Hollandse Kust I and II windfarm sites is expected in mid-October, according to the group, with the tender set to open shortly thereafter.

NWEA spokesman Marijn van der Pas said “Considering the recent cost reductions inside and outside the Netherlands, [our group] thinks it is wise to anticipate zero-subsidy bids.

“Currently the Dutch tender system doesn’t take this possibility into account. Therefore, we are working hard to advise the government on policy changes that would make zero-subsidy bids possible.”

Mr van der Pas said the Dutch government’s practice of mitigating risk for companies looking to invest in offshore wind and the maturing offshore wind market are all part of an equation that has led to lower bids in recent auctions.

It is partly these successes, he said, that have spurred a desire by members of the NWEA – including Royal Dutch Shell – to aim for more ambitious targets for offshore wind.

“The [current government goal] is an extra 7 GW, as put down in the Energieagenda. NWEA thinks that will not be enough to reach the Dutch CO2 reduction goals. We have to add 2 GW per year to fulfil the Paris goals,” Mr van der Pas said.

“We absolutely agree with Shell and other NWEA members that the Netherlands offshore wind capacity needs to grow at an additional 2 GW per year.”

 

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