The Dutch government is allocating additional financial support for the development of two new offshore wind farms in the North Sea. By increasing the maximum subsidy levels for the IJmuiden Ver Gamma-A and Gamma-B sites, the government aims to ensure sufficient market interest in delivering a total of 2 gigawatts (GW) of new wind energy capacity.
€6.2 Billion Budget Reserved
For IJmuiden Ver Gamma-A, the maximum tender price increases from €104 to €117 per megawatt-hour (MWh). For Gamma-B, the ceiling rises from €103 to €116 per MWh.
The government has reserved approximately €6.2 billion for the two projects. However, the final cost may be lower if winning bids come in below the maximum tender caps. Actual expenditures will also depend on electricity price developments during the subsidy period.
Grid Fee Uncertainty Influences Policy
In setting the updated tender ceilings, the government consulted the Netherlands Environmental Assessment Agency (PBL). However, the PBL could not factor in a potential electricity feed-in tariff that the Authority for Consumers and Markets (ACM) is considering introducing.
To mitigate financial risks for developers, the government has opted to provide additional budgetary flexibility. Market consultations indicate strong interest in participating in both tenders, and competition is expected to drive final subsidy levels below the maximum thresholds.
Offshore Wind Remains Key to Energy Transition
The IJmuiden Ver Gamma-A and Gamma-B projects are considered essential for strengthening the Netherlands’ domestic energy supply and advancing the energy transition. The government continues to pursue a predictable rollout of offshore wind capacity and is working on a new support framework using Contracts for Difference (CfDs), with legislation expected to be submitted to the House of Representatives before the summer.
Timeline and Tender Process
The two offshore wind farm zones will be opened to the market through subsidy tenders in November. The subsidy tenders for IJmuiden Ver Gamma-A and IJmuiden Ver Gamma-B open on Thursday 26 November and close on Thursday 10 December at 17:00. The government expects to grant permits in the first quarter of 2027.
If the timeline is met, the projects are expected to become operational around 2032, significantly contributing to the Netherlands’ renewable energy supply. The tenders will be executed by the Netherlands Enterprise Agency (RVO). Source (RVO). Image: Own, via IA