Short Reads

New approach Dutch offshore wind tenders

New approach Dutch offshore wind tenders

New approach Dutch offshore wind tenders

05.07.2017 NL law

On 28 June 2017, the Minister of Economic Affairs announced in a letter to Parliament that the tender for sites I and II of the Hollandse Kust (zuid) wind farm is scheduled to open in autumn. As the Minister cannot exclude the possibility that a non-subsidised bid will be submitted, the tender will first open for non-subsidised bids only. If no, or only non-qualifying, bids are received in this first phase, a tender procedure including subsidies will take place.

This spring, three tenders for offshore windfarms in Germany resulted in a subsidy free award: the He Dreiht wind farm (EnBW), the OWP West wind farm (DONG Energy) and the Borkum Riffgrund WII wind farm (DONG Energy). The Minister acknowledges that there are various differences between the recent German and Dutch wind farm tenders, including (among other things) the regulatory framework, the expected date of operation and the wind speed. However, despite these differences the Minister cannot exclude the possibility that a non-subsidised bid will be submitted in the tender for sites I and II of the Hollandse Kust (zuid) windfarm. As a result, the Minister has now decided that, in deviation of the Borssele I/II and III/IV tenders, the tender for sites I and II of the Hollandse Kust (zuid) wind farm will first open for non-subsidised bids only. If no, or only non-qualifying, bids are received in this first phase, a tender procedure including subsidies will take place.

The Offshore Wind Energy Act already provides for a procedure for tenders including subsidies as well as for a procedure for non-subsidised tenders. In a tender procedure including subsidies, the applicant with the lowest subsidy price wins the tender. In a non-subsidised tender, a winner is selected on the basis the following criteria:

  1. The knowledge and experience of the parties involved;
  2. The quality of the design for the wind farm;
  3. The capacity of the wind farm;
  4. The social costs;
  5. The quality of the identification and analysis of the risks; and
  6. The quality of the measures to safeguard cost-effectiveness.

In the coming months, the Ministry of Economic Affairs will elaborate on the procedure for a non-subsidised tender with the aim of opening the tender for sites I and II of the Hollandse Kust (zuid) wind farm in autumn.

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