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Update on recent developments regarding offshore wind energy by the Dutch Minister

Update on recent developments regarding offshore wind energy by the Dutch Minister

Update on recent developments regarding offshore wind energy by the Dutch Minister

27.05.2015 NL law

On 19 May 2015, the Minister of Economic Affairs sent a letter to the House of Representatives with an outline of the new legal framework for offshore wind energy in the Netherlands and a summary of certain recent developments (please click here to view the letter).

According to the plans of the Dutch government, the first two wind farm sites (i.e. Borssele I and II) will be put to tender by the end of 2015. The Minister announced in his letter that the maximum tender amount for these sites will be 12.4 ct/kWh and the base electricity price 2.9 ct/kWh. The letter also sets out indicative maximum tender amounts for the sites that will be tendered in the period 2016-2019.

The letter further indicates that some requirements regarding the subsidy tender have been amended. A subsidy application will now be rejected if the equity capital of the applicant is less than 10% of the total investment costs. In the previous draft of the ‘Regulation on Offshore Wind Energy 2015′ (Regeling windenergie op zee 2015) a minimum requirement of 5% of the total investment costs was included. Furthermore, the Minister announced that the amounts of the two bank guarantees that must be provided by the winning bidder have been increased. The first bank guarantee that must be furnished within 4 weeks from the date of the subsidy decision, must now be in the amount of € 10 million (previously € 5 million), and the second bank guarantee that must be furnished within 12 months from the date of the subsidy decision, must be in the amount of € 35 million (previously € 25 million).

Please click here to view our blogpost on the draft versions of the ‘Regulation on Offshore Wind Energy 2015′ (Regeling windenergie op zee 2015) and the ‘Implementation Regulation on the Offshore Wind Energy Act 2015′ (Uitvoeringsregeling Wet windenergie op zee 2015) of 21 April 2015.

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