The Dutch cabinet is scaling back its ambition for offshore wind power, acknowledging setbacks in the energy transition. The initial goal of 50 gigawatts by 2040 has been revised to a range of 30 to 40 gigawatts. This adjustment reflects the realities of grid congestion, nitrogen-related issues, high electricity costs, and challenges within the wind sector.

The government recognizes that achieving the original target would require ideal conditions, which are unlikely given current obstacles. Despite the reduced target, the Netherlands remains committed to offshore wind development, albeit at a more sustainable pace. A comprehensive action plan for offshore wind is expected in September, addressing both supply and demand considerations.

Demand for green hydrogen and electricity from industry has been lower than anticipated. The government acknowledges its role in stimulating demand but points to challenges faced by companies seeking to become more sustainable. These challenges include electricity grid constraints, delays in CO2 storage, and the construction of a hydrogen transport pipeline.

Tailor-made agreements with large companies, aimed at accelerating their transition to green energy, have often fallen short. The government emphasizes the influence of global factors, such as competition from cheaper Chinese products, on the progress of the energy transition. While the long-term goal of 70 gigawatts by 2050 remains, its feasibility is now uncertain, particularly if the 2040 target is not met.

Acknowledging criticism from the business community regarding the pace of the energy transition, the government maintains that it is navigating a complex phase. Geopolitical developments underscore the need to persevere, but the cabinet also recognizes the importance of adapting its plans to reflect achievable goals. The government believes that taking action, even if unpopular, is preferable to inaction, which would ultimately burden businesses and citizens.