The Netherlands’ tender for the Nederwiek I-A offshore wind farm has failed to attract any bids, signaling challenges in the offshore wind energy market. Outgoing Climate Minister Sophie Hermans informed parliament that the tender, located about 100 kilometers north of Texel, closed this week without a single application.

Hermans stated that this outcome underscores the necessity of government support to sustain the growth of offshore wind energy development. The project, intended to power the equivalent of one million households by 2030, faces headwinds due to shifting market dynamics.

According to the minister, conditions have significantly changed since 2018, when companies initiated offshore wind farm projects without public subsidies. Since then, construction expenses have increased, while the industrial sector’s demand for renewable electricity has grown more slowly than anticipated. These factors have made it more challenging for developers to secure long-term power purchase agreements, thereby diminishing their inclination to invest.

Similar issues have surfaced in Germany, Denmark, Britain, and Belgium, where tenders have experienced delays or cancellations due to a scarcity of prospective investors.

In response, the Dutch government has outlined a series of short- and medium-term actions aimed at maintaining project momentum. Subsidies will be reinstated from 2026, and a program designed to reduce electricity expenses for major industrial consumers has been extended until 2028.

Despite this setback, Hermans emphasized that offshore wind remains a crucial component for achieving energy independence and ensuring an adequate supply of green electricity during the energy transition.

Earlier this year, Eneco, an energy provider, announced its decision not to participate in a new tender round for the construction of a wind farm situated 50 kilometers off the coast of IJmuiden.

Currently, offshore wind farms contribute 15% of the electricity consumed by Dutch households.