Dutch utility company Eneco and its Norwegian partner Equinor have decided to withdraw from the 4GW offshore wind tender in the Dutch North Sea. The tender, which commenced in February, pertains to building permits at two locations within the IJmuiden Ver wind farm zone.
Eneco’s departure has influenced the tender, given its significant role in supporting offshore wind power development in the Netherlands for the past decade. Eneco currently operates four offshore wind farms in the Dutch North Sea and is in the process of constructing a fifth one.
Together with Equinor, Eneco had planned to bid for the new 4GW wind farm, which was intended to span two sites situated 60 km off the Dutch coast.
However, Eneco has assessed those challenges such as supply chain issues, rising raw material costs, uncertainties surrounding power demand and prices, and high borrowing rates have weakened the viability of submitting a bid. Eneco has published a white paper outlining these concerns and its subsequent choice not to participate in the tender.
In its white paper, Eneco has called on the Dutch government to reassess the structure of its offshore wind tenders. Eneco criticized the current emphasis on builders’ offered prices and proposed that tender sizes should be capped at approximately 1GW to mitigate risks.
A government representative mentioned that although several builders have shown interest in the project, it remains uncertain how many bids will be submitted.
Reuters reported Climate ministry spokesperson Noortje Beckers acknowledging, “We acknowledge that market conditions have evolved since the tender was formulated, making the business case more complex.”
Even with Eneco’s retreat, the government affirms its dedication to boosting the Dutch North Sea’s wind capacity from around 5GW to about 21GW by 2031.
source: Equinor
