Dutch cut back offshore wind plans by 2040 due to lower demand

The Dutch government scaled back its plans on Wednesday to build offshore wind farm in the next fifteen years. It cited rising costs and a lower than expected demand for electricity from industry.

The government announced that its former target of reaching offshore wind capacity total of 50 gigawatts in 2040 is no longer realistic and will be replaced with a new goal between 30 and forty GW.

In a letter sent to the parliament, Climate Minister Sophie Hermans stated that "the international market situation is very challenging" for offshore wind.

"Costs are higher, and the electrification process is slower than anticipated, which increases uncertainty about future demand for renewable electricity." Construction of data centers for artificial intelligence is putting some utilities to the test.

The Netherlands pushed back their plans last year to increase the offshore wind capacity of the Dutch portion of the North Sea to 21 GW instead of 2030 due to similar concerns. It postponed the tenders in May for two offshore wind farm with a capacity totaling 2 GW because of a lack interest among potential bidders.

Hermans has promised to detail plans for future tenders, including new subsidies, by the third quarter. Prospective bidders have been backing out of the "zero subsidy model" currently in place.

(source: Reuters)