Dutch Government's Offshore Energy Vision: Wind Power and Hydrogen Development
Key Ideas
- The Dutch government aims for 21 GW of offshore wind capacity by 2030 and subsidizes two hydrogen demonstration projects to reach up to 550 MW by 2033.
- To make offshore wind farms more cost-effective, the government is exploring a feed-in tariff and 'contract for difference' model.
- Tenders for offshore wind farm sites are split into smaller zones, with new regulations expected to make the business case more attractive for investors.
- An offshore green hydrogen demonstration project (Demo 1) is planned to connect to the Hollandse Kust (Noord) offshore wind farm site, with a budget of €380 million for the project.
The Dutch government is dedicated to achieving significant milestones in offshore wind energy and hydrogen production. They plan to have 21 GW of offshore wind capacity operational by 2030, with additional projects aiming for up to 550 MW of hydrogen production by 2033. In an effort to reduce costs and make offshore wind farms more financially viable, the government is considering implementing a feed-in tariff and a 'contract for difference' model to support the industry. This model involves subsidies for producers during low energy prices and fees back to the government during high prices, ensuring stability in energy costs in the long term.
The government is also working on splitting wind farm zones for upcoming tenders into smaller sites to attract more investors. Furthermore, they are exploring the use of the SDE++ subsidy scheme in combination with a 'contract for difference' for offshore wind energy production. New regulations are expected to make the business case more appealing for offshore wind farm investments.
In parallel, the Dutch government is progressing with an offshore green hydrogen production demonstration project named Demo 1. The project aims to connect to the Hollandse Kust (Noord) offshore wind farm site and will involve the construction of an electrolyser with a minimum capacity of 20 MW. The selected consortium for Demo 1 will receive a tailor-made subsidy, subject to approval by the European Commission. Gasunie (GTS) will be responsible for transporting the produced hydrogen onshore and connecting it to the national hydrogen network.
Interested parties have the opportunity to provide feedback on the call for proposals for Demo 1 until January 26, 2025, with the goal of selecting a consortium by September 2025. The Dutch government's initiatives demonstrate a positive outlook towards offshore energy development and the integration of hydrogen production into their renewable energy strategy.