The Dutch government has lowered its target for offshore wind power capacity in 2040 from 50 gigawatts to a range of 30 to 40 gigawatts. This adjustment comes as the nation faces challenges in its energy transition.

Several factors contributed to the revised target, including grid congestion, nitrogen-related issues, high electricity costs, and struggles within the wind energy sector. Progress on energy transition in Europe has also been slower than anticipated.

Despite the reduced target, the government remains committed to developing offshore wind energy and aims to turn the North Sea into a green energy hub for Europe. The 30-gigawatt target is considered a necessary minimum for 2040, with potential for further expansion if demand increases.

While demand for green hydrogen and electricity from the industry has been lower than expected, the government plans to address this issue with an action plan for offshore wind to be released in September. The plan will explore ways to stimulate demand, acknowledging that companies face obstacles in becoming more sustainable due to grid problems, delays in CO2 storage, and the construction of hydrogen transport infrastructure.

The government’s tailor-made agreements with large companies to accelerate their transition to green energy have faced difficulties. The competitiveness of the Dutch industry is affected by factors such as cheaper chemicals and steel from other countries.

The long-term goal of 70 gigawatts of offshore wind capacity by 2050 remains, but its feasibility is now in question. The government will reassess the overall energy strategy in September, including the potential role of new nuclear power plants and green hydrogen, recognizing that increased hydrogen imports may be necessary.

Despite criticism from the business community about the pace of the energy transition, the government maintains that it is in a difficult phase and must continue its efforts. Adjusting targets is seen as a responsible approach to address challenges and avoid burdening entrepreneurs and citizens with unnecessary costs.