Netherlands scales back offshore wind farm plans due to rising costs

Published 16/07/2025, 14:24
Netherlands scales back offshore wind farm plans due to rising costs

Investing.com -- The Dutch government has reduced its offshore wind farm targets for the next 15 years, citing increased costs and lower industrial electricity demand than previously forecast.

The government announced Wednesday it was lowering its 2040 offshore wind capacity goal from 50 gigawatts to between 30 and 40 GW.

"The international market situation for offshore wind is very challenging," Climate Minister Sophie Hermans wrote in a letter to parliament. "Costs have risen, while the electrification of industry is going slower than expected, increasing uncertainty over future demand for sustainable electricity."

This marks the second time the Netherlands has adjusted its wind energy plans. Last year, the country delayed its target to increase offshore wind capacity in the Dutch North Sea from the current 4.7 GW to 21 GW, pushing the deadline from 2030 to the end of 2032.

The government also postponed tenders for two offshore wind farms with a combined 2 GW capacity in May due to insufficient interest from potential bidders.

Hermans has committed to delivering detailed plans for future tenders by the third quarter, which may include new subsidies, as prospective bidders have been reluctant to participate in the current "zero subsidy" model.

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