The Netherlands recently encountered a significant hurdle in its offshore wind ambitions. No companies submitted bids for the Nederwiek I‑A offshore wind farm, a planned 1 GW project located approximately 100 kilometres off the coast of Texel in the North Sea. Originally, the wind farm was expected to start supplying electricity by 2030, generating enough power to cover the needs of around one million households. Now, a new tender process is required, delaying the project and potentially increasing costs for the national grid operator, TenneT.

Why the Tender Failed?

Caretaker Minister for Climate and Green Growth, Sophie Hermans, explained that several factors contributed to the lack of bids. Since 2018, the Dutch government had stopped awarding subsidies for offshore wind, leaving developers to rely solely on market-based returns. At the same time, the cost of constructing offshore wind farms has risen sharply due to supply chain pressures, higher raw material prices, and global demand for specialized vessels and equipment.

Additionally, the pace of the energy transition has been slower than expected, which has made investors more cautious about committing to large, high-risk projects. The combination of rising costs and market uncertainty has created a challenging environment for developers, especially under the previous subsidy-free tender model.

Government Response

In response to the failed tender, the Dutch government announced plans to reintroduce subsidies for offshore wind farms starting next year. The government also plans to adjust tender requirements to make investment more attractive, including simplifying certain criteria, reducing the scale of the project, and providing financial support mechanisms to mitigate early-stage risks.

Minister Hermans emphasized that, despite this setback, offshore wind remains a critical part of the Netherlands’ energy transition strategy. Expanding offshore wind capacity is essential not only for meeting climate targets but also for enhancing the country’s energy independence and security.

Broader Implications

The failure of the Nederwiek I‑A tender highlights the complex realities of offshore wind development. Even in mature markets like the Netherlands, factors such as financing, construction costs, and market uncertainty can create significant challenges. This situation also underscores the importance of carefully designed tender processes, financial support, and long-term planning to ensure projects remain viable.

Delays in offshore wind development could affect the Netherlands’ broader goal of increasing offshore capacity from 4.7 GW to 21 GW by 2031, potentially slowing progress toward carbon reduction targets. At the same time, lessons from this experience can help shape future tenders, making them more attractive to investors while maintaining ambitious sustainability objectives.

Looking Ahead

Despite current challenges, offshore wind remains one of the fastest growing and most promising sources of renewable energy in Europe. Projects like Nederwiek I‑A play a vital role in reducing carbon emissions and supporting energy security. By adjusting policies, providing financial incentives, and refining tender designs, the Netherlands can continue to foster growth in this critical sector.

While the failed tender is a setback, it also offers an opportunity to learn, adapt, and strengthen the framework for future offshore wind development. With strategic planning and support, the Netherlands can continue to lead in offshore wind and build a sustainable, resilient energy future.

References

Netherlands Enterprise Agency . (2025). Nederwiek – General Information. Retrieved from Netherlands Enterprise Agency : https://offshorewind.rvo.nl/page/view/91063764-5eb7-428e-9c6e-e38fcf3adf22/general-information-nederwiek?utm_source=chatgpt.com

NL Times. (2025, October 31). Not a single company wants to build a Dutch offshore wind farm in the North Sea. Retrieved from NL Times: https://nltimes.nl/2025/10/31/single-company-wants-build-dutch-offshore-wind-farm-north-sea

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