Dutch offshore wind energy policy an overview. Mark Stuurman Policy advisor
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1 Dutch offshore wind energy policy an overview Mark Stuurman Policy advisor
2 Overview Quick introduction Dutch Approach Site selection Roadmap Seabed Lease Tender system Future Challenges and latest developments Japan Offshore Wind Policy Seminar 2
3 Japan Offshore Wind Policy Seminar 3
4 Introduction The Netherlands at a glance Strong supply chain Excellent ports Good wind resource Shallow waters (<40 m) Easy soil conditions (sandy) Hurricane, earth quake and tsunami free Japan Offshore Wind Policy Seminar 4
5 Introduction Policy Objectives Offshore Wind Keeping pace with the roll out tot meet the Climate targets Reduce cost of offshore wind Promote competition and innovation Japan Offshore Wind Policy Seminar 5
6 Current Approach Offshore wind approach Government o Introduces dedicated legal framework o Defines wind farm zones o Performs consenting o Provides grid connection (via TSO TenneT) o Provides site data o Puts wind farms on the market with tenders for permit (and simultaneous subsidy if needed) Japan Offshore Wind Policy Seminar 6
7 Current Approach Government reduces risks of first stages Government lead Developer lead 7 Japan Offshore Wind Policy Seminar
8 Current Approach Clear pipeline of projects Wind farm site GW tender operational 1 Borssele I and II 2 x Borssele III and IV 2 x HK zuid I and II 2 x HK zuid III and IV 2 x HK noord V Wind farm site GW tender operational 6 HK west 2 x / Ten Noorden vd Wadden IJmuiden Ver I and II 2 x / IJmuiden Ver III and IV 2 x /2030 Japan Offshore Wind Policy Seminar 8
9 Current Approach 2018 Japan Offshore Wind Policy Seminar 9
10 Current Approach 2023 Japan Offshore Wind Policy Seminar 10
11 Current Approach 2030 Japan Offshore Wind Policy Seminar 11
12 Current Approach TSO provides grid connection TenneT (TSO) connects wind farms to the grid Standardised platforms of 700 MW (currently) Advantages: o No substations required o Bundling of cables o Less impact on surroundings o Faster roll-out possible o Lower cost Set-up consulted and fixed in govt. framework and TSO investment plan Japan Offshore Wind Policy Seminar 12
13 Current Approach Tender characteristics Goal: select party that is most likely to actually construct the windfarm, at the lowest total cost. Strong requirements for technical and financial feasibility (with flexibility to improve) Selection methods With subsidy: - Bid based on strike price Without subsidy: - Comparative assessment - Auction (proposal) Bank guarantee provided by winner to ensure construction Japan Offshore Wind Policy Seminar 13
14 Tender results until now Results of first 3 tenders (700 MW each) exceeded expectations: Ørsted wins Borssele I & II at strike price of 72.7/MWh Blauwwind II wins Borssele III & IV at strike price of 54.5/MWh Chinook wins Hollandse Kust (zuid) I & II, first non subsidized Offshore wind farm world wide Future tenders: Current Approach March this year the tender for Hollandse Kust (zuid) III & IV will open Japan Offshore Wind Policy Seminar 14
15 Future Challenges Key challenges Need for master plan North Sea Further growth only sensible with additional demand for electricity: Electrification of processes Substitution of fossil-based fuels and feedstock Limitations in onshore grid: congestion and spatial issues Until recently we thought ecology (birds) would limit further growth Japan Offshore Wind Policy Seminar 15
16 Thank you Japan Offshore Wind Policy Seminar 16
17 Appendices Japan Offshore Wind Policy Seminar 17
18 Current Approach Seabed leasing Two regimes that are relevant: 1. general use of seabed North sea (Water Act) 2. Use of seabed within 12-mile of coast The first is covered in the Site Decision and requires no lease payments. The second requires a separate contract with the Central Government Real Estate Agency and requires lease payments (only for the area within the 12 mile zone) The lease contract is standardized (and published before the tender) and linked to the permit. So a party that gets the permit will always be able to get the lease contract and knows beforehand the amount they need to pay. Japan Offshore Wind Policy Seminar 18
19 Future Challenges Ecology When current road map was determined (2018): Just enough room for road map Additional capacity: Larger turbines Additional research Other way of dealing with EU Bird- and Habitat Directives But intermediate results WOZEP research program shows impact is smaller than anticipated and additional capacity is possible. Japan Offshore Wind Policy Seminar 19
20 Future Challenges Integration in onshore grid current road map can be accommodated. Additional capacity Connection (far) inland (HVDC), and/or Electrification of processes near shore Substitution of fossil-based fuels and feedstock Conversion and storage (e.g. H 2 ).??? Japan Offshore Wind Policy Seminar 20
21 Future Challenges Many activities, interests and values Sand and shell mining Ecology (Telecom) cables Shipping Fisheries & aquaculture Military Aviation Wind energy Oil and gas Culture and historical values Offshore grid Recreation Japan Offshore Wind Policy Seminar 21
22 Latest developments 2018 Draft Climate Agreement: No additional capacity before more demand develops For current road map current system is sufficient Research on future technologies, energy mix and energy market. May have impact on offshore wind projects, which may require change of approach on long term Master Plan North Sea and North Sea Agreement: Follow up National Water Plan: a new weighing of all activities Public private agreement on how to deal with changing balance between fisheries, nature and offshore wind Japan Offshore Wind Policy Seminar 22
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