Netherlands to Launch New 4 GW Offshore Wind Tender in Q3 2025; 1 GW Projects Possibility Due to Market Conditions

June 10, 2024, by Adrijana Buljan

The Dutch government plans to invite tenders for two new offshore wind areas, IJmuiden Ver Gamma and Nederwiek 1, by the end of the third quarter of 2025. The two areas will add a further 4 GW of offshore wind capacity to the grid in the Netherlands.

An image showing a map of all upcoming Dutch offshore wind projects, IJmuiden Ver Gamma and Nederwiek 1 sites highlighted — Netherlands Enterprise Agency (RVO)

The procedure for granting permits for the two offshore wind farms has now been established and detailed by the Dutch Minister of Economic Affairs and Climate Policy in a Letter to Parliament issued on 31 May.

Unlike the tender for the IJmuiden Ver Alpha and Beta, for which the winning bidders will be announced tomorrow (11 June), the procedure for IJmuiden Ver Gamma and Nederwiek 1 may also see project capacities of 1 GW, instead of 2 GW, offered. One site of 2 GW and two sites of 1 GW are also a possibility.

This tendering setup is being considered due to the deteriorated market conditions, according to the Netherlands Enterprise Agency (RVO), which expects to further clarify this part of the upcoming tender during the summer.

The applications for the IJmuiden Ver Gamma and Nederwiek 1 sites will be evaluated based on a comparative test (qualitative criteria) with a financial bid.

In the qualitative criteria, same as in the previous two tenders, RVO will be looking at nature mitigation and enhancement features of the proposed projects, as well as system integration involving hydrogen production and grid balancing.

Before setting up the tendering rules, RVO and the Ministry of Economic Affairs and Climate Policy asked offshore wind developers for input on the various procedures and discussed the current market conditions. The dialogue showed that most developers were in favour of a comparative test, according to RVO.

The Ministry and RVO appointed research specialist AFRY to perform a study into current uncertainties and risks in the Dutch offshore wind market.

The study found that, while the Netherlands offers an attractive tender setup, there are challenges impacting the business case.

The increasing difference between the expected revenues and costs of an offshore wind farm increases the financial risk for developers. A comparative test with a focus on qualitative objectives instead of only a financial bid is therefore the best option, RVO said. Another option that is being investigated is a permit procedure awarding project subsidies.

In its report to the Dutch government, AFRY proposed seven key recommendations to improve the market environment. Along with the abovementioned, the research company also recommended making considerations around turbine size and encouraging standardisation.