Netherlands Revises Offshore Wind Energy Plans Amid Slow Transition Progress
(MENAFN) The Netherlands has revised its offshore wind energy plans for the North Sea, citing slower-than-anticipated progress in the green transition and ongoing challenges in the industrial sector, the caretaker government revealed Wednesday.
In a letter to parliament, Climate Minister Rob Jetten Hermans acknowledged that the country’s previous goal of generating 50 gigawatts (GW) of offshore wind capacity by 2040 is now "no longer realistic," according to media.
The government has since set a new target of at least 30 GW by 2040, with the potential to increase it to 40 GW, depending on how circumstances evolve.
Currently, offshore wind farms in the North Sea generate around 4.7 GW, which accounts for roughly one-sixth of the nation’s yearly electricity demand.
Earlier this year, the government delayed tenders for two additional wind farm zones amid growing concerns over market feasibility.
Hermans also pointed out that decarbonizing heavy industry has been more challenging than anticipated, meaning many factories will continue relying on fossil fuels for the foreseeable future.
“The energy transition must proceed within the limits of what is technically, economically, and socially feasible,” Hermans remarked, emphasizing that electricity demand from both industry and households has not increased as quickly as initially projected.
A key part of the offshore wind power was intended for green hydrogen production, aimed at helping industry reduce emissions without fully transitioning to electricity.
However, demand for green hydrogen has been underwhelming, primarily due to high energy prices, grid congestion, and international competition.
The outlook for the offshore wind sector has been further dampened by rising construction costs and elevated interest rates.
Industry leaders have repeatedly warned that new projects could face significant delays without additional government support. A coalition of 21 companies recently urged the government to introduce financial guarantees or subsidies to mitigate investment risks.
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