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Dutch environmental agency warns about delays in North Sea wind projects

October 24, 2024

The Netherlands' PBL environmental assessment agency warned that delays in the roll-out of offshore wind already leads to increased greenhouse emissions, and further increases are expected.

TenneT, the Dutch grid company, says that a rapid expansion of windmills in North Sea is an important part of Dutch environmental policy. Planned spending of more than 100 billion Euros ($108 billion) for it.

In April, the government pushed back its plans to increase capacity to 21 gigawatts from the current 4.7 gigawatts. It cited costs, supply-chain difficulties, and "challenges with timely decision making".

According to the PBL, delays lead to an increase in electricity generated using fossil fuels.

The Dutch government said that the forecasts for Dutch emissions in 2030 "depend primarily on the pace at which wind-at-sea projects are implemented."

The agency stated that the government "has the ambition" of increasing offshore wind power to 50GW by the year 2040. However, the space is not reserved for them and the target date 2032 is uncertain.

It is unclear whether extra investments made in wind energy at the sea will be realized, the report said. The publication cited the possibility of a worsening profit as prices drop during the peak hours for wind production.

It said that "if producers are unable to earn a return from their investments, they may not invest."

Eneco retracted from the bidding process citing a worsening of the business case. The government auctioned off 4GW in offshore wind permits.

The market regulator ACM announced earlier this month that it was preparing plans to introduce tariffs on electricity producers, such as offshore wind operators.

Electricity producers claim that this will discourage investment.

(source: Reuters)

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