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The Netherlands plans to auction with negative bids for at least 1.7 GW of wind on April 2022

Wednesday, 29 December 2021

Author: Addison L.D. Wu

The Netherlands government has planned the offshore wind auction of Hollandse Kust (west) on April 14th 2022, which is supposed to be held in Q4 2021. In the Netherlands, it is the first time that potential developers can submit negative bids for the tendered offshore wind project. 

According to the Netherlands Enterprise Agency (RVO.nl), developers are able to offer a rate that includes payment for the rights to build and manage the facilities. The tender's financial bid is capped at EUR 50 million, which means that the participant who bids EUR 50 million for the permit, will receive the highest financial bid score. The incremental point is awarded EUR 2.5 million for a lesser bid.

The draft Ministerial Orders of the Hollandse Kust (west) has been published by the Ministry of Economic Affairs and Climate Policy. It will be available for review until January 21st 2022. Afterwards, on January 31st, RVO will host an online information meeting concerning the tender and regulations of the Hollandse Kust (west) wind farm zone.

The auction window will last for around one month, and the tender is closed on May 12th 2022. The result is expected to be announced around the end of Q3 in 2022. The winner will have five years to complete the wind farm construction and commissioning. By 2025/26, the project should be operational.

The Hollandse Kust (west) Wind Farm Zone (HKWWFZ) is composed of two wind farm sites: HKW Wind Farm Site VI and VII. It is located approximately 53 kilometres off the Netherlands' west coast, with a total surface area of approximately 176 square kilometres (including maintenance and safety zones).

The maximum turbines number for each site is 60, with an individual rated capacity of at least 14MW. The total combined capacity of this zone is at least 1,680 MW. TenneT, the transmission system operator, will build two offshore platforms with two grid connections within the zone.

Source: EnergyWatch & offshoreWIND.biz